Category: company law

The consequences for administrators of furloughing employees – further clarification: Re Debenhams Retail Limited [2020] EWHC 921 (Ch) – Radcliffe Chambers

Posted April 24th, 2020 in administrators, chambers articles, company law, coronavirus, employment, insolvency, news by sally

‘In a judgment dated 17th April 2020 in Re Debenhams Retail Limited (in administration) [2020] EWHC 921 (Ch), Trower J determined an application for directions by the joint administrators of Debenhams which concerned the impact of the application of the Government’s Coronavirus Job Retention Scheme in administrations and the recent decision of Snowden J in Re Carluccio’s Limited (in administration) [2020] EWHC 886 (Ch). Matthew Weaver considers Trower J’s judgment and its implications in this briefing.’

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Radcliffe Chambers, 21st April 2020

Source: radcliffechambers.com

Re Carluccio’s Limited (in Administration) – Pump Court Chambers

Posted April 24th, 2020 in administrators, chambers articles, company law, coronavirus, employment, insolvency, news, remote hearings by sally

‘It should be noted from the outset that Snowden J’s judgment in Re Carluccio’s is not binding. There were no representative employees or interested parties during the remote video hearing so the judgment does not bind the employees or the government.’

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Pump Court Chambers, 22nd April 2020

Source: www.pumpcourtchambers.com

Do Me a Favour… But How? Helping your counterparties without risking your contractual rights – Radcliffe Chambers

Posted April 23rd, 2020 in chambers articles, company law, contracts, news by sally

‘A lot of attention has focused recently on how to get out of contracts by relying on frustration or force majeure. In the near future, there will be a reckoning of who has behaved well and who has behaved badly, irrespective of their legal rights. In this article, we look at ways in which our less cynical clients can do their commercial counterparties a favour, to help them get through the short term, without running the risk of losing their legal rights in the long term. While our clients might well want to help out the people with whom they do business, they would not want to lose out if they had to prove in a subsequent insolvency.’

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Radcliffe Chambers, 22nd April 2020

Source: radcliffechambers.com

‘Light Touch’ Administration as a Rescue Tool – 3 Hare Court

Posted April 21st, 2020 in administrators, chambers articles, company law, coronavirus, insolvency, news, schemes of arrangement by sally

‘On the 28 March 2020, the Department for Business, Energy, and Industrial Strategy announced a series of insolvency legislation reforms including a new court based restructing tool modelled on the Scheme of Arrangement and a short business moratorium to protect companies facing the prospect of insolvency as a result of the Covid-19 crisis.’

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3 Hare Court, 20th April 2020

Source: www.3harecourt.com

Use of the Government’s coronavirus job retention scheme by companies in administration: Re Carluccio’s Limited [2020] EWHC 886 (Ch) – Radcliffe Chambers

Posted April 21st, 2020 in administrators, chambers articles, company law, coronavirus, employment, insolvency, news by sally

‘In a judgment handed down on Monday 13th April 2020 in Re Carluccio’s Limited (in administration) [2020] EWHC 886 (Ch), Snowden J considered the application of the Government’s Coronavirus Job Retention Scheme in administrations both as a matter of principle and in respect of the logistics and practicalities involved for office holders. Matthew Weaver considers the judgment and its implications in this briefing.’

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Radcliffe Chambers, 16th April 2020

Source: radcliffechambers.com

The Impact of Coronavirus on Winding Up Petitions – 3 Hare Court

Posted April 21st, 2020 in chambers articles, company law, coronavirus, courts, insolvency, live link evidence, news, winding up by sally

‘Coronavirus has affected both the functioning of businesses and the Courts. In these unprecedented times, how are the Courts dealing with the hearings of winding up petitions?’

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3 Hare Court, 14th April 2020

Source: www.3harecourt.com

Frustration, COVID-19 and company voluntary arrangements – Radcliffe Chambers

Posted April 20th, 2020 in chambers articles, company law, coronavirus, news by sally

‘Your world appeared to be collapsing. You had a good core business, but because of cash flow difficulties, you could not pay your debts as and when they fell due. You were then saved – or, at least, you thought you were- by a trading company voluntary arrangement (“CVA”), under which you are required to make regular monthly contributions of a certain amount. You thought that you would survive with the protection of your CVA – that is until Covid-19 struck. Now, as a non-essential business, you have been forced to close, albeit temporarily, by The Health Protection (Coronavirus, Restrictions) (England) Regulations 2020 (“the 2020 Regulations”). Alternatively, you are allowed to stay open, but because of Government Guidance about social distancing, you have had to reduce your workforce, or your workforce is much reduced because of sickness or self-isolation. Alternatively, for commercial, health and safety or other reasons, you have decided temporarily to close your business. All of this has stopped or reduced your turnover and as a result you are unable to meet the payment requirements of your CVA. Is it open, in these circumstances, for anyone to argue that the restrictions imposed on your business and your consequent failure to comply with your CVA have frustrated your CVA?’

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Radcliffe Chambers, 15th April 2020

Source: radcliffechambers.com

Corporate failure to prevent abuses – Law Society’s Gazette

Posted April 7th, 2020 in civil justice, company law, financial regulation, fraud, human rights, money laundering, news by sally

‘While debate rumbles on over the extension of ‘failure to prevent’ offences into the broad spectrum of financial crime, including fraud and money laundering, some have called for their introduction into an altogether different sphere: human rights.’

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Law Society's Gazette, 6th April 2020

Source: www.lawgazette.co.uk

High Court rules directors cannot buy assets of their liquidated company on the cheap – Local Government Lawyer

Posted January 30th, 2020 in company directors, company law, compensation, insolvency, news, valuation by tracey

‘The High Court has ruled that company directors cannot buy assets from their liquidated companies at below market value.’

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Local Government Lawyer, 30th January 2020

Source: www.localgovernmentlawyer.co.uk

Director must compensate creditors for cut-price purchase from insolvent company – Law Society’s Gazette

Posted January 23rd, 2020 in company directors, company law, compensation, insolvency, news, valuation by tracey

‘Directors of insolvent companies should not be allowed to buy assets of the business on the cheap, the High Court has ruled. In Systems Building Services Group Limited [2020] EWHC 54 (Ch), the court this week ruled that a director is liable to pay the liquidators of his company money he saved by not placing a house owned by the company on the open market when the company went under.’

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Law Society's Gazette, 22nd January 2020

Source: www.lawgazette.co.uk

Whose knowledge counts? Singularis v. Daiwa and Attribution – 4 New Square

Posted November 20th, 2019 in agency, company directors, company law, duty of care, fraud, news, Supreme Court by sally

‘Last week, the Supreme Court handed down its decision in Singularis Holdings Ltd v. Daiwa Capital Markets Europe Ltd [2019] UKSC 50. That case got the attention that it did because of the tension with the result in Stone & Rolls Ltd v. Moore Stephens. Others have dealt with the detail of the decision in Singularis (including an excellent article by my colleague, Mark Cannon QC). I want to look more generally at the issues created by attribution in a corporate context, and how the courts in recent years have approached them.’

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4 New Square, 6th November 2019

Source: www.4newsquare.com

CVAs after the Debenhams decision – Falcon Chambers

Posted November 7th, 2019 in company law, debts, insolvency, landlord & tenant, news by sally

‘In May 2019, the requisite majority of the creditors of Debenhams Retail Ltd voted in favour of a company voluntary arrangement (“CVA”) proposed pursuant to s.1 of the Insolvency Act 1986. As has become common, the scheme of arrangement proposed by the CVA only affected the rights of landlords and rating authorities. All other creditors were to be paid in full.’

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Falcon Chambers, 31st October 2019

Source: www.falcon-chambers.com

A Summary Of Recent Corporate Insolvency Cases – Hardwicke Chambers

Posted October 30th, 2019 in administrators, company directors, company law, fraud, insolvency, news, podcasts, professional conduct by sally

‘Phillip Patterson provides a summary of recent corporate insolvency cases covering:

– Fraudulent trading;
– Misfeasance, transactions defrauding creditors and the duties of directors; and
– The out of court appointment of administrators.’

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Hardwicke Chambers, 9th October 2019

Source: hardwicke.co.uk

Legal advice privilege “survives” company’s dissolution – Legal Futures

Posted October 7th, 2019 in appeals, company law, consent, damages, deceit, disclosure, documents, fraud, guarantees, legal services, negligence, news, privilege by tracey

‘Legal advice privilege (LAP) attaching to communications between a company and its lawyers survives the dissolution of the company, even if the Crown has disclaimed all interest in its former property, the Court of Appeal has ruled.’

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Legal Futures, 7th October 2019

Source: www.legalfutures.co.uk

Derivative actions and unfair prejudice petitions, by Georgina Squire – Law Society Gazette

Posted September 25th, 2019 in company law, derivative claims, dispute resolution, families, news, partnerships, shareholders, unfairly prejudicial conduct by michael

‘Shareholder claims principally consist of unfair prejudice petitions (UPPs), instigated by members on their own behalf, and derivative actions (DAs), brought by the members on behalf of the company. Dinglis v Dinglis [2019] and Tonstate Group Ltd and Ors v Edward Wojakovski [2019] have developed the law surrounding a shareholder’s ability to bring UPPs and DAs. They involve family-run companies, providing cautionary tales for family members who choose not to formalise matters sufficiently.’

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Law Society Gazette, 23rd September 2019

Source: www.lawgazette.co.uk

UK court rejects landlords’ challenge to Debenhams CVA – Pinsent Masons

Posted September 25th, 2019 in company law, debts, landlord & tenant, news, rent by michael

‘Court rejected landlords’ challenge to Debenhams’ CVA in what will be seen as a victory for retailers and a validation of “landlord only” CVAs.’

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Pinsent Masons, 24th Septwmber 2019

Source: www.pinsentmasons.com

Akcil & Ors v Koza Ltd & Anor [2019] UKSC 40 – Hardwick Chambers

Posted August 29th, 2019 in company law, foreign jurisdictions, jurisdiction, news, subsidiary companies, trusts by sally

‘The first respondent (“Koza Ltd”) was a private company incorporated in England in March 2014. Koza Ltd was a wholly owned subsidiary of the sixth appellant (“Koza Altin”), a publicly listed company incorporated in Turkey and part of a group of Turkish companies known as the Koza Ipek Group (“the Group”). The Group was formerly controlled by the second respondent (“Mr Ipek”).’

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Hardwicke Chambers, 22nd August 2019

Source: hardwicke.co.uk

Exclusive Jurisdiction for Company Law Claims Under Article 24 (2) of the Brussels I (Recast) Regulation: Akçil and Others v Koza Ltd and Another [2019] UKSC 40 – 39 Essex Chambers

Posted August 23rd, 2019 in appeals, company law, foreign jurisdictions, jurisdiction, news, statutory interpretation, Supreme Court, terrorism by sally

‘On 29 July 2019, the Supreme Court handed down its decision in Akçil and others v Koza Ltd and another [2019] UKSC 40 (see Supreme Court judgment) unanimously overturning the decision of the Court of Appeal ([2017] EWCA Civ 1609) regarding the interpretation of the the exclusive company law jurisdictional provisions in Article 24(2) of the Brussels I (Recast) Regulation (1215/2012).’

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39 Essex Chambers, 2nd August 2019

Source: www.39essex.com

Expert Evidence on Share Valuations: When to use hot tubbing in unfair prejudice petitions – 4 New Square

Posted August 1st, 2019 in accountants, civil procedure rules, company law, expert witnesses, news, practice directions, shareholders, unfairly prejudicial conduct by sally

‘A critical part of any unfair prejudice petition is the valuation of the minority shareholding. Paul Mitchell QC and Nigel Burroughs of 4 New Square were counsel on different sides in Swain v Swains Plc, a case in which the expert share valuation evidence was taken concurrently. They look at the pros and cons of hot tubbing, and offer practical advice on how to approach the way experts should give their evidence.’

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4 New Square, 22nd July 2019

Source: www.4newsquare.com

Shareholder Disputes in Sport – 4 New Square

Posted August 1st, 2019 in company directors, company law, news, shareholders, sport, unfairly prejudicial conduct by sally

‘As the law of unfair prejudice in the conduct of companies’ affairs has developed, sports clubs (particularly football and rugby clubs) have proved to be fertile sources of disputes between shareholders. In this article, we examine unfair prejudice petitions which have concerned the sports sector to look at the effects of those decisions and at what we can learn not just about the sorts of shareholder disputes which arise in sports clubs but also what we can learn from those decisions and apply to shareholder disputes in other contexts.’

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4 New Square, 24th July 2019

Source: www.4newsquare.com