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Compensation Orders in Director Disqualification Proceedings

Compensation Orders in Director Disqualification Proceedings – the First Judgment Handed Down in 4 Years since its Implementation under the Regime In line with the aim of the disqualification regime, to make directors accountable for the consequences arising as a result of their unfit conduct, the Secretary of State may apply to court for a …

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Does agreeing to “reasonable costs” mean assessment on the indemnity basis?

Yes, held the Commercial Court. In Alafco Irish Aircraft Leasing Sixteen Ltd v Hong Kong Airlines Ltd [2019] EWHC 3668 (Comm) the parties had entered into a lease which contained a clause that the Defendant (who was the lessee) was to pay all of the Claimant’s (the lessor’s) “reasonable costs and expenses” of litigation, including its legal …

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Office holders discharging their evidential burden

Case comment: Wood v Watkin [2019] EWHC 1311 (Ch) (Judge Barber of the High Court) The above case serves as a warning on officeholder claims and provides further clarity on the expectation of the court in relation to office holders discharging their evidential burden The Facts Karl Watkin (the “Debtor”) was a successful entrepreneur, however, …

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Liability imposed on an insolvent LLP’s members for breach of fiduciary duty and wrongful trading

McTear v Eade and anr (Re C.J. & R.A. Eade LLP (in liquidation)) [2019] EWHC 1673 (Ch), ICCJ Jones, 11 June 2019 This case, before I.C.C. Judge Jones, was the first reported case under section 214A of the Insolvency Act 1986. This provision, which relates to wrongful trading, allows the liquidator of an insolvent Limited …

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What constitutes property for the purposes of section 436 of the Insolvency Act 1986?

Where an individual is adjudged bankrupt, all his property (subject to certain exceptions) will vest in his Trustee in Bankruptcy immediately upon their appointment pursuant to section 306 of the Insolvency Act 1986 (“the Act”). “Property” is broadly defined in legislation. Section 436 of the Act defines property as ‘money, goods, things in action, land and …

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Using a charging order to recover a debt secured with a personal guarantee

If you are owed a debt which has been secured with a personal guarantee (“PG”) and the individual who provided that PG (“the Debtor”) has a beneficial interest in land, securities (for example, stock, dividends and interest in a trust) or has other assets, you may wish to consider imposing a charge over the same. …

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Commercial Debt Recovery: Pre-Action Protocols and Conduct

The court will expect the creditor to have sent out a Letter Before Claim to the debtor, which would set out the basis of their claim and allow a reasonable amount of time for the debtor to fully respond. For straight-forward cases, it is expected that a response should be received within a period of around 14 …

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Does a Tomlin Order constitute a regulated credit agreement?

On 15th July 2019 in CFL Finance Ltd v Bass and others [2019] EWHC 1839 (Ch), the High Court (Chief ICC Judge Briggs) published its decision following the final hearing of a bankruptcy petition. The court refused to adjourn the creditor’s bankruptcy petition where creditors were in dispute as to how to proceed with regard …

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