The re-use of an insolvent company is protected by UK insolvency law. It helps to protect the interests of investors and creditors are not damaged by a lack of transparency relating to the director's involvement with an insolvent company, and continued involvement with its phoenix. In UK, Investors and creditors were protected under rule 4.228 and rule 4.229 of the Insolvency Rules 1986. Rule 4.228 requires notice has to be given to all the creditors of the insolvent company stating the directors’
Introduction The main aim of this article is to undertake a analysis of the effect that the advantage to creditors requirement has on sequestration applications. In terms of the Insolvency Act 24 of 1936 there are two processes that a debtor may sequestrate his estate. Either by voluntary surrender of his estate or by compulsory sequestration. In both these instances there is a requirement that the granting of the sequestration must be to the “advantage of the creditors”. A discharge of debtors
and why” a firm ought reasonably suspect insolvent trading via exploration of areas of law, management, psychology and economics. Factors given consideration include the difference between risk and uncertainty, the imperfection of market information, the risk appetite of entrepreneurs, the impact of corporate culture on self-awareness and finally criteria for assessing proximity to insolvency from both a case law and a common-sense perspective. An essential difference between risk and uncertainty
Introduction The terms ‘international insolvency’ and ‘cross-border insolvency’ have no designate meaning but are commonly taken to be interchangeable and to refer to insolvencies which derives from cross-border trading or which include the application, or possible application, of the insolvency laws of two or more jurisdictions. An international insolvency is generally characterized by one or more of the following features: the debtor’s business is conducted in different countries; the creditors
by a collective insolvency regime which attempts to ensure the rateable and equitable distribution of the assets of the insolvent company among its creditors. This distribution is known as pari passu distribution. The Essay will focus on the meaning of the Pari Passu principle, the origin and reason of said principle, examining the criticism it faces both positive and negative concluding with if it can truly be said of the pari passu that it is fundamental in corporate insolvency law. Pari passu is
Section 6 (1) of the Insolvency Act requires the insolvent debtor to satisfy the court that sequestration will be to the advantage of the creditors. This onus is difficult to discharge, as many insolvent debtors do not have sufficient assets to provide for the benefit of creditors. There are many fundamental rights in the Constitution that the Insolvency Act poses a threat to, including section 9, the right to equality. One must keep in mind that even if a right is being inflicted upon, it does
The Scottish Law Commission (SLC) have stated that the introduction of ‘Advance Notices’ as part of the Land Registration (Scotland) Act 2012 will be ’appealing to conveyancers and the system should benefit their clients’. The SLC also go on to state that advance notices ‘offer something more direct and effective than the protection offered by a letter of obligation.’ The idea behind the introduction of advance notices was to minimise the risk period between the delivery and registration of a deed
Personal Liability Case Study Assessment of the likelihood of Sid and Kenny avoiding personal liability for the debts of the company. This question deals with directors avoiding personal liability for debts of a company, especially within the category of fraud, which is applicable to this scenario. This question also deals with lifting the corporate veil as if the directors are found to be liable the veil will need to be lifted, so as to expose the members whom are found to be liable
these differences matter or not and in case of any differences, if they are only based on terminology. To begin it is of use to identify main legal families. They include Anglo-American group, Roman-Germanic group, Napoleonic group, mixed civil law/common law group, Islamic group and new jurisdictions. Amongst these, most of the jurisdictions recognize
Prevent Insolvent Trading Insolvency can be defined as the situation whereby a debtor lacks the ability to settle the debts that they have. This definition can also include situations in which companies have numerous liabilities, most of which are greater than the assets that they have (Adams 2002, 70). The type of insolvency that regards cash flow complications often incorporates the inability of firms to settle their debts whenever they are due. The other type of insolvency that regards the balance
countries’. The UCC is just one example of how a security system operates, other jurisdictions have been drawn in to highlight that a truly successful reform will involve combining the most positive aspects of each system. Unlike other aspects of the law, commerce is a fast-paced environment, and change must happen soon to provide clarity and focus. Without it trade will be halted, the economy will falter, and the protection of sellers will continue to be overlooked.
Bankruptcy Law in Canada Bankruptcy is the worst nightmare of any business owner or Organization. People see it as the beginning of the end of any business, individual or organization. Bankruptcy itself is a legal process that is initiated by a creditor against a debtor that is unable to pay outstanding debts. It begins with filing of petition on behalf of a creditor by a bankruptcy lawyer against a debtor. Different countries and states have their own separate bankruptcy law that is peculiar to
I have completed my LLM Employment Law and Practice course; this has increased my knowledge of the Equality Act 2010 (EqA) and its application in practice. I noted that in order to ensure equality and diversity was in place staff needed to have the relevant training to understand the EqA. I have previously worked as a law lecturer at South East Essex college teaching students AS law and vocational paralegal studies. In order to motivate the students I developed various forms of teaching methods
the knowledge of the poor financial situation and possibility of insolvency which happened in the case of ASIC v Plymin (2003) VSC 123. Thus, he breached s588G(1) because at that time there were reasonable grounds that the business would become insolvent from the decline in sales due to the new policy implemented and the company was having trouble paying its suppliers. Therefore, despite being aware of the possibility of insolvency, he still issued the loan which led to the company winding up. This
candidates and hopefully will make the bench a wider mix of society. The Courts and Legal Services Act 1990 allows solicitors to form partnerships with other services such as accountants. Although, because of the rules set by the Bar Council and The Law Society, solicitors are prohibited to create a "one stop shop". So under the Act solicitors can recommend a firm of accountants to a client but can not set up business together. The Courts and Legal Services Act 1990 extended the rights of conveyancing
duties mentioned in the Act occur concurrently with the general law duties. In order to ensure compliance with the legislation, the Act has implemented the use of civil penalty provisions to target the perceived shortfall of the previous methods of corporate law administration. Actions for contravention can only be brought forth by the Australian Securities and Investments Commission (ASIC) in its role as watchdogs of corporate law. Directors that are found in contravention
Real estate is property included land and buildings. Real estate also called realty. It can be categorized into three main group. First group is residential, it is designed for people to reside, for examples of residential real estate include houses, condominiums and town homes. The second group is commercial, the businesses usually occupy it for lease the space, for examples of commercial real estate are office buildings, warehouses and retail store buildings. The last group is industrial, it is
citizens. Pick a country and analyze the type of legal system the country has (common law, civil law, or theocratic law). The country I chose to analyze is Singapore. I found Singapore to be a great hub for any business needing a presence in Asia. Singapore has kept many of the British law practices since it gained independence. The legal system of Singapore is based on the English common law system (“Law of Singapore,” n.d.). Singapore has since evolved into a unique jurisprudence, with an
CHAPTER 1: INTRODUCTION 1.1 RESEARCH BACKGROUND Marine insurance plays an important role in risk management service by providing individual protection against the risk of losses from the various perils. Besides, marine insurance is essential in the field of overseas and internal trade of a country. If there is no cover or protection by marine insurance the entire trade structure may bind to suffer. There are two types of marine insurance protection which are hull insurance and cargo insurance.
Natural justice is a humanising principle for it seeks to ensure that law is fair and just and that there occurs no miscarriage of justice. The phrases ‘substantial justice’, ‘fundamental justice’, ‘universal justice’ or ‘fair play in action’ also alludes to the notion of natural justice. It functions on the basis of preconceptions such as ‘man is basically good and hence he must not be harmed’ and ‘one ought to treat others as one would like oneself to be treated’. Though considered a highly noble