Is a fine imposed on a company by a criminal court a provable debt in the company’s winding up or administration? In an important ruling for insolvency professionals, the High Court has provided an authoritative answer to that novel question. Prior to entering voluntary liquidation,
Helping friends in financial trouble is one thing, but assisting them to defraud their creditors is quite another. In a case on point, a woman who came to the dishonest aid of a businessman facing bankruptcy was herself hit hard in the pocket. The woman
Hope springs eternal and directors of ailing companies understandably often cling to forlorn prospects of better times ahead. However, in placing a company that ran a Formula One racing team into administration, the High Court found that the bullet finally had to be bitten. An
Administrators of insolvent companies are obliged to focus on creditors’ interests and can be found personally liable if they fail to do so. In a case on point, the High Court ruled that the administrator of a troubled broadcasting company had breached his duty of
A great many companies pay their directors largely in dividends, rather than through the PAYE system, as a more tax-efficient means of remunerating them. As a Court of Appeal insolvency case illustrated, however, it is vital to remember that companies that do not make profits
Companies go through good times and bad and, when their debts mount, specialist lawyers are adept at ensuring that matters are dealt with in an orderly fashion and that creditors get the best possible deal. Exactly that happened in one case in which High Court
When a corporate insolvency is on the cards, directors can be tempted to remove as much money as possible from the kitty before the ship sinks. However, a High Court ruling has strikingly shown how unwise it is to take such a course, and that
If your company is facing insolvency, it is vital to keep the interests of creditors at the forefront of your mind and a failure to do so can lead to criminal sanctions. The point was underlined by one case in which a businessman who withdrew
