INDEX

A

Absconding . . . . . . . . . . . . . . . . . . . . . . . . . 239

Administration

See also Administrator

Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 court order. . . . . . . . . . . . . . . . . . . . . . 108–10 dismissal of employees . . . . . . . . . . . 129–32 effect of. . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 employees, and. . . . . . . . . . . . . . 128, 129–32 end of . . . . . . . . . . . . . . . . . . . . . . . . . . 119–20 Enterprise Act 2002,

effect of . . . . . . . . . . . . . . . . . . . . 49, 105, 114 expenses of . . . . . . . . . . . . . . . . . . . . . 120–21 generally . . . . . . . . . . . . . . . . . . . . . . . 105–06 hire-purchase agreements . . . . 110, 112, 114 interim moratorium . . . . . . . . . . . . . . . . . 110 introduction of company

administration orders . . . . . . . . . . . . . . 105 moratorium . . . . . . . . . . . . . . . . . 110–14, 286 partnership administration

orders . . . . . . . . . . . . . . . . . . . . . . . . . 124–25 process of . . . . . . . . . . . . . . . . . . . . . . . 115–16 purposes of . . . . . . . . . . . . . . . . . . . . . 114–15 routes into . . . . . . . . . . . . . . . . . . . . . . 106–10 statement of affairs. . . . . . . . . . . . . . . . . . 226 statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Administrative receiver

appointment of . . . . . . . . . . . . . . . . . . . 49, 53 breach of duty. . . . . . . . . . . . . . . . . . . . . . 215 contracts of employment,

and . . . . . . . . . . . . . . . . . . . . . . . . . . 129, 130 debenture holder, duties to. . . . . . . . . 54–56 definition . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 duties of . . . . . . . . . . . . . . . . . . . . . . 52, 54–56 Enterprise Act 2002,

effect of . . . . . . . . . . . . . . . . . . . . . . . . 49, 105 generally . . . . . . . . . . . . . . . . . . . . . . . . 49, 50 Law of Property Act receiver

distinguished. . . . . . . . . . . . . . . . . . . . 52–53 liability of . . . . . . . . . . . . . . . . . . 56, 129, 130 powers of. . . . . . . . . . . . . . . . . . . . . 52, 53–54 qualifications. . . . . . . . . . . . . . . . . . . . . . . . 52 removal of . . . . . . . . . . . . . . . . . . . . . . 53, 213 remuneration. . . . . . . . . . . . . . . . . . . . . . . 114

Administrative receivership

advantages of . . . . . . . . . . . . . . . . . . . . . . . 50 criticism of. . . . . . . . . . . . . . . . . . . . . . . . . . 50 dismissal of employees . . . . . . . . . . . 129–32 employees, and. . . . . . . . . . . . . . . . . . 128–32 generally . . . . . . . . . . . . . . . . . . . . . . . . 13–14 investigation . . . . . . . . . . . . . . . . . . . . . . . 224

Administrator

See also Administration

appointment of . . . . . . . . . . . . . . . . . 49, 105, 106–07, 115 breach of duty. . . . . . . . . . . . . . . . . . . . . . 215

challenge to . . . . . . . . . . . . . . . . . . . . . 118–19 creditors’ meeting. . . . . . . . . . . . . . . . 115–16 directors, and . . . . . . . . . . . . . . . . . . . . . . 116 distribution to creditors. . . . . . . . . . . . . . 118 expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . 120 fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 floating charge, property

subject to. . . . . . . . . . . . . . . . . . . . . . . . . . 118 function of . . . . . . . . . . . . . . . . . . . . . . . . . 105 misfeasance . . . . . . . . . . . . . . . . . . . . . . . . 119 powers of . . . . . . . . . . . . . . . . . . . . . . . 116–18 proposals . . . . . . . . . . . . . . . . . . 115, 116, 117 purposes of administration. . . . . . . . 114–15 removal of . . . . . . . . . . . . . . . . . . . . . 119, 213 remuneration . . . . . . . . . . . . . . . . . . . . . . 120 replacing . . . . . . . . . . . . . . . . . . . . . . . . . . 119 resignation. . . . . . . . . . . . . . . . . . . . . . . . . 119 responsibilities . . . . . . . . . . . . . . 115, 116–18 statement of proposals. . . . . . . . . . . . . . . 115 sums payable to employees

under new contracts . . . . . . . . 120–21, 128

Agency

compulsory winding up order,

effect of . . . . . . . . . . . . . . . . . . . . . . . . . . . 181

Assets

available to creditors . . . . . . . . . . . . . 286–91 bank accounts, operation of . . . . . . . 346–47 bankrupt’s estate

See Bankrupt’s estate

book debts, general assignment

by bankrupt . . . . . . . . . . . . . . . . . . . . . . . 357 choses in action. . . . . . . . . . . . . . . . . . . . . 287 claim to be entitled to goods

as purchaser. . . . . . . . . . . . . . . . . . . . 313–15 contributories, payments by. . . . . . . 360–61 defeasible interests. . . . . . . . . . . . . . . 288–89 definition of ‘property’ . . . . . . . . . . . 286–87 disclaimer of onerous property . . . . 291–94 dispositions of property

between petition and order . . . . . . 343–47 distribution of

See Distribution of assets equitable interests under

a trust . . . . . . . . . . . . . . . . . . . . . . . . . 320–26 excessive pension

contributions . . . . . . . . . . . . . . . . . . . . . . 357

extortionate credit bargains . . . . . . . . . . 356 intangible assets . . . . . . . . . . . . . . . . . . . . 287 interests in land . . . . . . . . . . . . . . . . 287, 292 limited liability partnership

claw-back . . . . . . . . . . . . . . . . . . . . . . . . . 357 pension. . . . . . . . . . . . . . . . . . . . . 306–07, 357 personal assets . . . . . . . . . . . . . . . . . . . . . 287 preferences

See Preferences recognition of pre-insolvency

property rights . . . . . . . . . . . . . . . . . 289–91 retention of title by seller

See Retention of title by seller

security rights over . . . . . . . . . . . . . . . 21–22, 327–39 third parties, claimed by . . . . . . . . . 309–026

third party liability

See Third party liability

tracing property . . . . . . . . . . . . . . . . . 311–13 transactions at an undervalue

See Transactions at an undervalue

trusts

See Trusts

unpaid seller’s rights. . . . . . . . . . . . . . . . 320

Assignment of book debts by

bankrupt . . . . . . . . . . . . . . . . . . . . . . . . . . 357

Association of Business

Recovery Professionals . . . . . . . . . . . . . 216

Attachment of earnings order. . . . . 39, 41–42

Australia . . . . . . . . . . . . . . . . . . . . . . . . . . 63, 69

B

Bank

‘charge-back’ to. . . . . . . . . . . . . . . . . . 338–39

Bank rescue

Banking Code . . . . . . . . . . . . . . . . . . . . 74, 75 Business Banking Code . . . . . . . . . . . . 74, 76 company ‘workouts’ . . . . . . . . . . . . . . . . . 76 generally . . . . . . . . . . . . . . . . . . . . . . . . 74–75 London Approach . . . . . . . . . . . . . . . . 77, 83 personal customers . . . . . . . . . . . . . . . 75–76

Bankrupt

See also Bankruptcy

absconding . . . . . . . . . . . . . . . . . . . . . . . . 239 book debts, assignment of . . . . . . . . . . . 357 ceasing to be . . . . . . . . . . . . . . . . . . . . 162–64 concealment of books and

papers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 concealment of property . . . . . . . . . . 237–38

culpability . . . . . . . . . . . . . . . . . . . . . 235, 236 discharge . . . . . . . . . . . . . . . . . . 8, 63, 162–64 EC Draft Bankruptcy

Convention . . . . . . . . . . . . . . . . . . . . . . . . 11 engaging in business . . . . . . . . . . . . . 239–40 estate of

See Bankrupt’s estate

false statements . . . . . . . . . . . . . . . . . . . . 238 falsification of books and

papers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 fraudulent dealing with

property obtained on credit . . . . . . . . . 239 fraudulent disposal of

property . . . . . . . . . . . . . . . . . . . . . . . 238–39 freedom from harassment by

creditors . . . . . . . . . . . . . . . . . . . . . . . . . . 162 home of

See Family home

income . . . . . . . . . . . . . . . . . . . . . . . . . 305–06 loss of property. . . . . . . . . . . . . . . . . . . . . 162 non-disclosure . . . . . . . . . . . . . . . . . . . . . 237 obtaining credit. . . . . . . . . . . . . . 236, 239–40 offences . . . . . . . . . . . . . . . . . . . . 162, 237–40 pension. . . . . . . . . . . . . . . . . . . . . . . . . 306–07 personal disabilities . . . . . . . . . . . . . 162, 236 statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 undischarged . . . . . . . . . . . . . . . 162, 236–40

Bankruptcy

See also Bankrupt

annulment of order . . . . . . . . . . . . . 153, 164 appeals. . . . . . . . . . . . . . . . . . . . . 151, 158–59 application to review or

rescind order . . . . . . . . . . . . . . . . . . . 158–59 ‘change of carriage’ order . . . . . . . . . 156–57 conduct of . . . . . . . . . . . . . . . . . . . . . . 159–62 court fees . . . . . . . . . . . . . . . . . . . . . . . . . . 153 court jurisdiction . . . . . . . . . . . . . . . . . . . 151 creditors’ committee,

appointment of . . . . . . . . . . . . . . . . . . . . 160 creditor’s petition. . . . . . . . . . . . . . . . 154–58 debtor’s petition . . . . . . . . . . . . . . . . . 152–54 default under an IVA,

petition in connection with. . . . . . . . . . 154 discharge . . . . . . . . . . . . . . . . . . . . . . . . 8, 63, 162–64 domicile of debtor . . . . . . . . . . . . . . . . . . 152

effect of. . . . . . . . . . . . . . . . . . . . . 271, 274–75 history of . . . . . . . . . . . . . . . . . . . . . . . . . 7–11 inability to pay debts,

meaning of. . . . . . . . . . . . . . . . . . . . . . . . 153 information, duty to supply . . . . . . . 225–26

initiating . . . . . . . . . . . . . . . . . . . . . . . 152–59 investigation. . . . . . . . . . . . . . . 162, 207, 223, 225–26, 227, 230 jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . 151

meaning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 notification of order . . . . . . . . . . . . . . . . . 158 notification of petition . . . . . . . . . . . . . . . 158 offences . . . . . . . . . . . . . . . . . . . . 162, 237–40 Official Receiver, role of . . . . . 159, 160, 162,

207, 223, 230 pari passu principle . . . . . . . . . . . . 8, 273, 395 partner, of . . . . . . . . . . . . . . . . . . . . . . . . . . 31 petitioners . . . . . . . . . . . . . . . . . . . . . . . . . 152 presentation of petition . . . . . . . . . . . . . . 152 process of. . . . . . . . . . . . . . . . . . . . 13, 151–64 public examination . . . . . . . . . . . . . . . . . 230 refusal of order . . . . . . . . . . . . . . . . . . . . . 157 residence of debtor. . . . . . . . . . . . . . . . . . 152 restriction orders . . . . . . . . . . . . . . . . . . . 240 trustee in

See Trustee in bankruptcy

Bankruptcy restriction orders . . . . . . . . . . 240

Bankrupt’s estate

after-acquired assets . . . . . . . . . . . . . . . . 305 assets which are not ‘property’

as matter of common law . . . . . . . . 295–96 exempt assets . . . . . . . . . . . . . . . . . . . 296–97 home. . . . . . . . . . . . . . . . . . . . . . . . . . 297–305 income . . . . . . . . . . . . . . . . . . . . . . . . . 305–06 pension. . . . . . . . . . . . . . . . . . . . . . . . . 306–07

Blagden Committee . . . . . . . . . . . . . . . . . . . 11

Book debts

assignment of . . . . . . . . . . . . . . . . . . . . . . 357

Books concealment or

falsification of . . . . . . . . . . . . . . . . . 238, 245

Brougham’s Bankruptcy Act . . . . . . . . . . . . 10

Business failure

reasons for . . . . . . . . . . . . . . . . . . . . . . . 35–36

C

Canada. . . . . . . . . . . . . . . . . . . . . 63, 68–69, 298

Champerty

See also Funding litigation

assignments still subject to . . . . . . . . 383–85 general exceptions . . . . . . . . . . . . . . . 381–82 generally . . . . . . . . . . . . . . . . . . . . . . . 380–81 insolvency exemptions . . . . . . . . . . . 382–83

Chancery Court . . . . . . . . . . . . . . . . . . . . 10, 11

Charging order. . . . . . . . . . . . . . . . . . 39, 43–44 Collective redundancies . . . . . . . 128, 132–33 Committee of creditors. . . . . 116, 160, 212–13 Community Legal Service

funding . . . . . . . . . . . . . . . . . . . . . . . . 385–87 Company administration orders

See Administration;

Administrator

Company books concealment or

falsification of . . . . . . . . . . . . . . . . . 238, 245

Company directors

See Directors

Company Law Review

directors’ duties . . . . . . . . . . . . . . . . . . . . 201 phoenix companies . . . . . . . . . . 241–42, 266 schemes of arrangement . . . . . . . . . . . . . . 67

Company name

leave to use prohibited

name . . . . . . . . . . . . . . . . . . . . . . . . . . 263–64 preventing re-use of. . . . . . . . . . . . . . 261–63

Company voluntary arrangement

alterations to . . . . . . . . . . . . . . . . . . . . 101–02 application for moratorium . . . . . . . . 89–90 approval by meeting . . . . . . . . . . . . . . 97–98 challenge to . . . . . . . . . . . . . . . . . . . . . 100–01 claimant with unliquidated

claim, effect on . . . . . . . . . . . . . . . . . 99–100 Cork Committee . . . . . . . . . . . . . . . . . . . . . 85 creditors’ consideration of

proposals . . . . . . . . . . . . . . . . . . . . . . . . . . 96 failure, consequences of . . . . . . . . . . 102–03 generally . . . . . . . . . . . . . . . . . . 13, 60, 63–66, 85, 86 implementation . . . . . . . . . . . . . . . . . . . . 101

material irregularities . . . . . . . . . . . . . . . 101 moratorium . . . . . . . . . . . . . . . . 13, 86, 88–93 statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 third parties, effect on . . . . . . . . . . . . . . . . 98 unfair prejudice . . . . . . . . . . . . . . . . . 100–01 variation of . . . . . . . . . . . . . . . . . . . . . 101–02 with moratorium . . . . . . . . . . . . . . . . . 89–90 without moratorium . . . . . . . . . . . . . . 88–89

Compulsory liquidation

advertisement of petition . . . . . . . . . 174–75 application to strike out

petition . . . . . . . . . . . . . . . . . . . . . . . . 175–77 cashflow test of insolvency. . . . . . . . . . . 173 commencement of . . . . . . . . . . . . . . 177, 181

company in voluntary liquidation, petition in

respect of . . . . . . . . . . . . . . . . . . . . . . 179–80 consequences of presentation

of petition. . . . . . . . . . . . . . . . . . . . . . . . . 177 consequences of winding

up order . . . . . . . . . . . . . . . . . . . . . . . . . . 181 control of . . . . . . . . . . . . . . . . . . . . . . . 181–83 court’s powers on hearing

petition . . . . . . . . . . . . . . . . . . . . . . . . 177–79 dissolution of company. . . . . . . . . . . 183–84 effect of. . . . . . . . . . . . . . . . . . . . . 271, 272–74 eligibility to petition . . . . . . . . . . . . . 171–72 end of . . . . . . . . . . . . . . . . . . . . . . . . . . 183–84 final general meeting . . . . . . . . . . . . . . . . 183 funding litigation

See Funding litigation

generally . . . . . . . . . . . . . . . . . . . . . . . 13, 171 grounds for petition. . . . . . . . . . . . . . 173–74 inability to pay debts . . . . . . . . . . . . . 173–74 investigation . . . . . . . . . . . . . . . . . . . . . . . 224 jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . 171 liquidation committee . . . . . . . . . . . . . . . 182 liquidator. . . . . . . . . . . . . . . . . . . 182–83, 204 offences

See Offences

Official Receiver, role of . . . . . . 181, 206–07, 224

petition for winding up

order . . . . . . . . . . . . . . . . . . . . . . . . . . 171–80 proving debts

See Proving debts

public examination . . . . . . . . . . . . . . . . . 224 refusal to make order. . . . . . . . . . . . 178, 179 rescission or stay of order . . . . 169, 176, 179 statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 withdrawal of petition. . . . . . . . . . . . . . . 177

Concealment of books

and papers . . . . . . . . . . . . . . . . . . . . 238, 245 Concealment of property. . . . . . . . . . . 237–38 Conditional fee orders . . . . . . . . . . . . . . . . 388 Conditional sale . . . . . . . . . . . . . . . . . . . 19, 20 Consumer debtors. . . . . . . . . . . . . . . . . . 27–29

See also Debtors

assistance for. . . . . . . . . . . . . . . . . . . . . 71–74 causes of debt . . . . . . . . . . . . . . . . . . . . . . . 28 Cork Committee . . . . . . . . . . . . . . . . . . 28–29

Contractual arrangements . . . . . . . . . . . 77–78 Contractual lien . . . . . . . . . . . . . . . . . . . . . . . 47

Contributories

payments by . . . . . . . . . . . . . . . . . . . . 360–61

Cork Committee and

Report . . . . . . . . . . . . . . . . . . . . . . . 11–12, 63 advice to debtors . . . . . . . . . . . . . . . . . . . . 72 appointment of liquidators. . . . . . . . . . . 204 bankrupt’s estate . . . . . . . . . . . . . . . . . . . 296 bankrupt’s home . . . . . . . . . . . . . . . . . . . 297 company administration

orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 company voluntary

arrangement . . . . . . . . . . . . . . . . . . . . . . . 85 consumer debtors. . . . . . . . . . . . . . . . . 28–29 credit . . . . . . . . . . . . . . . . . . . . . . . . . . . 15, 17 Debts Arrangement Order . . . . . . . . . . . . 62 deeds of arrangement . . . . . . . . . . . . . . . . 79 discharge from bankruptcy. . . . . . . . . . . 163 disqualification of directors . . . . . . . . . . 264 individual voluntary

arrangement . . . . . . . . . . . . . . . . . 61–62, 85 insolvency law . . . . . . . . . . . . . . . . . . . 3, 4–5 Insolvency Service Account . . . . . . . . . . 219 investigative processes . . . . . . . . . . 199, 223 limited liability . . . . . . . . . . . . . . . . . . . . . 241 Ombudsman, proposal for . . . . . . . . . . . 216 phoenix companies . . . . . . . . . . 33, 201, 242 preferential debts . . . . . . . . . . . . . . . . . . . 400 public confidence . . . . . . . . . . . 199, 203, 237 public examinations. . . . . . . . . . . . . . . . . 230 reasons for business failure. . . . . . . . . . . . 35 receivership. . . . . . . . . . . . . . . . . . . . . . . . . 50 reputed ownership doctrine . . . . . . . . . . 289 rescue culture, and . . . . . . . . . . . . . . . . 59, 60 schemes of arrangement . . . . . . . . . . . . . . 83 set-off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281 voidable preferences . . . . . . . . . . . . . . . . 354

Corporate insolvency

company winding up. . . . . . . . . . . . . . . . . 11 court assistance in

investigation . . . . . . . . . . . . . . . . . . . 227–29 duty to investigate . . . . . . . . . . . . . . . 224–25 false representations to

creditors . . . . . . . . . . . . . . . . . . . . . . . . . . 246 falsification of company

books. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245 fraud in anticipation of

winding up . . . . . . . . . . . . . . . . . . . . . . . 244 generally . . . . . . . . . . . . . . . . . . . . . . . . 4–5, 7 history of . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 information, duty to

supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . 226

investigation . . . . . . . . . . . . . . . . . . . . 224–29 liquidation

See Compulsory liquidation; Voluntary liquidation

material omissions from

statement of affairs. . . . . . . . . . . . . . . . . 245 misconduct in course of

winding up . . . . . . . . . . . . . . . . . . . . . . . 245 offences . . . . . . . . . . . . . . . . . . . . . . . . 244–46 processes . . . . . . . . . . . . . . . . . . . . . . . . 13–14 statement of affairs. . . . . . . . . . . . . . . . . . 226 statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 transactions in fraud of

creditors . . . . . . . . . . . . . . . . . . . . . . . . . . 244

County court administration

current position . . . . . . . . . . . . . . . . . . 79–80 discharge of order . . . . . . . . . . . . . . . . . . . 80 effect of order . . . . . . . . . . . . . . . . . . . . 79–80 failure to comply with order. . . . . . . . . . . 80 fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 generally . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 history . . . . . . . . . . . . . . . . . . . . . . . . . . 80–81 proposed reform. . . . . . . . . . . . . . . . . . 81–82 restriction order . . . . . . . . . . . . . . . . . . . . . 81 statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Court for the Relief of

Insolvent Debtors . . . . . . . . . . . . . . . . . . . 10

Credit

bank loans . . . . . . . . . . . . . . . . . . . . . . . 18, 20 bankrupt obtaining . . . . . . . . . . 236, 239–40 cash loans . . . . . . . . . . . . . . . . . . . . . . . . . . 18 conditional sale. . . . . . . . . . . . . . . . . . . 19, 20 consumer credit . . . . . . . . . . . . . . . . . . 16–17 contractual security

See Security

Cork Committee . . . . . . . . . . . . . . . . . . 15, 17 credit cards . . . . . . . . . . . . . 16, 18, 20–21, 27 credit sale agreements . . . . . . . . . . . . . . . . 18 creditors of businesses. . . . . . . . . . . . . . . . 19 creditors of individuals . . . . . . . . . . . . 18–19 generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 government loans. . . . . . . . . . . . . . . . . 18–19 hire-purchase . . . . . . . . . . . . . . . . . 18, 19, 20 late payment of commercial

debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15–16 loan credit . . . . . . . . . . . . . . . . . . . . 19, 20–21 long term . . . . . . . . . . . . . . . . . . . . . . . . 15, 19 mail order . . . . . . . . . . . . . . . . . . . . . . . . . . 18 mechanisms for

provision of . . . . . . . . . . . . . . . . . . . . . 19–21 mortgage . . . . . . . . . . . . . . . . . . . . . 20, 21, 22

overdrafts . . . . . . . . . . . . . . . . . . . . 18, 20–21 pre-payments . . . . . . . . . . . . . . . . . . . . . . . 19 providers of. . . . . . . . . . . . . . . . . . . . . . . . . 18 receivables financing . . . . . . . . . . . . . . . . . 16 role in society . . . . . . . . . . . . . . . . . . 3, 15–17 sale credit

See Sale credit security

See Security

short term . . . . . . . . . . . . . . . . . . . . . . . 15, 19 Social Fund . . . . . . . . . . . . . . . . . . . . . . . . . 19 store cards . . . . . . . . . . . . . . . . . . . . . . . . . . 18 student loans. . . . . . . . . . . . . . . . . . . . . . . . 19 undischarged bankrupts,

and . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236

Credit cards . . . . . . . . . . . . . . 16, 18, 20–21, 27 Credit unions . . . . . . . . . . . . . . . . . . . . . . . . . 18 Creditors’ committee . . . . . . . . . . . . . 116, 160, 212–13 Creditors’ meeting . . . . . . . . . . . . . . . . 115–16, 160, 166

Criminal offences

See Offences

Cross-border issues

assets of insolvents abroad . . . . . . . . 414–15 creditor pursuing insolvent

in another jurisdiction . . . . . . . . . . . . . . 415 entitlement of foreign

claimants . . . . . . . . . . . . . . . . . . . . . . . . . 414 European Council Regulation

on insolvency proceedings . . . . . . 419–21 generally . . . . . . . . . . . . . . . . . . . . . . . 411–12 insolvent foreign company . . . . . . . . 413–14 insolvent foreign individual . . . . . . . 412–13 international co-operation . . . . . . . . 417–22 jurisdiction of English courts . . . . . . 412–17 recognition of foreign

proceedings by English

courts . . . . . . . . . . . . . . . . . . . . . . . . . 415–17 UNCITRAL Model Law on

Cross-border Insolvency . . . . . . . . . . . . 422 Crowther Committee. . . . . . . . . . . . . . 17, 28

D

Debt advice. . . . . . . . . . . . . . . . . . . . . . . . 71–74 Debt-equity swaps . . . . . . . . . . . . . . . . . 64–65 Debtors

company directors . . . . . . . . . . . . . . . . 33–34 consumer debtors. . . . . . . . . . . 27–29, 71–74 corporate . . . . . . . . . . . . . . . . . . . . . . . . . . 4–5

generally . . . . . . . . . . . . . . . . . . . . . . . . . 3, 27 guarantors of insolvent

companies . . . . . . . . . . . . . . . . . . . . . . . . . 30 imprisonment of. . . . . . . . . . . . . . . . . . . 9–10 inability to pay debts,

meaning of. . . . . . . . . . . . . . . . . . . . . . . . 153 individuals . . . . . . . . . . . . . . . . . . . . . . 27–30 limited liability companies . . . . . . . . . 32–33 limited liability partnerships . . . . . . . 31–32 oral examination. . . . . . . . . . . . . . . . . . . . . 39 partnerships . . . . . . . . . . . . . . . . . . . . . 30–32 reasons for business failure. . . . . . . . . 35–36 sole traders . . . . . . . . . . . . . . . . . . . . . . . . . 30

Debts

general assignment of book

debts by bankrupt . . . . . . . . . . . . . . . . . 357 late payment of

commercial debt . . . . . . . . . . . . . . . . . 15–16 proving

See Proving debts

Deeds of arrangement . . . . . . . . . . . 78–79, 85 Defeasible interests . . . . . . . . . . . . . . . 288–89 Directors

administrator, and . . . . . . . . . . . . . . 107, 116 appointment of

administrator. . . . . . . . . . . . . . . . . . . . . . 107 breach of fiduciary duty . . . . . . . . . . 362–63 co-operation with

administrator. . . . . . . . . . . . . . . . . . . . . . 116 common law duty of care . . . . . . . . . . . . 362 company name, preventing

re-use of . . . . . . . . . . . . . . . . . . . . . . . 261–64 compulsory winding up

order, effect of . . . . . . . . . . . . . . . . . . . . . 181 de facto directors . . . . . . . . . . . . . . . . . 34, 249 disqualification

See Disqualification of directors

duty to consider interests of

creditors . . . . . . . . . . . . . . . . . . . . . . . . . . 363 generally . . . . . . . . . . . . . . . . . . . . . . . . 33–34 leave to use prohibited

company name . . . . . . . . . . . . . . . . . 263–64 liability . . . . . . . . . . . . . . . . . . . . . . . . . . 11, 34 misfeasance . . . . . . . . . . . . . . . . . . . . . 362–63 qualification requirements . . . . . . . . . . . 201 shadow directors . . . . . . . . . . . . . . . . . . . . 34 voluntary liquidation, cessation

of powers . . . . . . . . . . . . . . . . . . . . . 166, 168

Dismissal of employees

See also Employees

administration, during . . . . . . . . . . . 129–32 administrative receivership,

during. . . . . . . . . . . . . . . . . . . . . . . . . 129–32 consultation about collective

redundancies. . . . . . . . . . . . . . . 128, 132–33 immediate dismissal by

insolvency practitioner . . . . . . . . . . 127–28 redundancy payments. . . . . . . . . . . 128, 391 termination payments . . . . . . . . . . . . . . 128, 129–30, 132 unfair . . . . . . . . . . . . . . . . . . . . . 128, 129, 130

wrongful . . . . . . . . . . . . . . . . . . . 127–28, 129

Disqualification of directors

contravention of order. . . . . . . . . . . . 246–47 Cork Committee . . . . . . . . . . . . . . . . . . . . 264 costs of proceedings. . . . . . . . . . . . . . 257–58 de facto directors . . . . . . . . . . . . . . . . . 34, 249 definition . . . . . . . . . . . . . . . . . . . . . . . . . . 246 foreigners. . . . . . . . . . . . . . . . . . . . . . . . . . 249 generally . . . . . . . . . . . . . . . . . . . . 12, 34, 246 grounds for . . . . . . . . . . . . . . . . . 246, 247–49 judicial interpretation of

‘unfitness’ . . . . . . . . . . . . . . . . . 249–53, 256 leave to act in spite of . . . . . . . . . . . . 259–60 length of. . . . . . . . . . . . . . . . . . . . 246, 258–59 nature of proceedings . . . . . . . . . . . . 256–58 procedures. . . . . . . . . . . . . . . . . . . . . . 253–55 register of orders . . . . . . . . . . . . . . . . . . . 247 report to Secretary of State . . . . . . . . . . . 225

Distress for rent. . . . . . . . . . . . . . . . . 37, 44–46 preferential debts, and. . . . . . . . . . . . 403–04

Distribution of assets contracting out of statutory

scheme . . . . . . . . . . . . . . . . . . . . . . . . 407–08 deferred creditors. . . . . . . . . . . . . . . . 406–07 discharge from

bankruptcy, and . . . . . . . . . . . . . . . . . . . 163 expenses and post-insolvency

creditors . . . . . . . . . . . . . . . . . . . . . . 397–400 generally . . . . . . . . . . . . . . . . . . . . . . . . 3, 395 manner of . . . . . . . . . . . . . . . . . . . . . . 395–97 ordinary creditors. . . . . . . . . . . . . . . . 405–06 pari passu principle . . . . . . . . . . . . 8, 273, 395 post-insolvency interest . . . . . . . . . . . . . 406 pre-preferential bankruptcy

debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 preferential creditors

See Preferential creditors

preferential debts . . . . . . . . . . . . . . . . 403–05 winding up partnership and

concurrent insolvency of

partners, on . . . . . . . . . . . . . . . . . . . . 191–92

E

Employees

Acquired Rights Directive,

applicability of . . . . . . . . . . . . . . . . . 137–39 administration, and . . . . . . . . . . 128, 129–32 administrative receivership,

and . . . . . . . . . . . . . . . . . . . . . . . . . . . 128–32 compulsory winding up order,

effect of . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 dismissal

See Dismissal of employees

generally . . . . . . . . . . . . . . . . . . . . . . . . . . 127 liability for continuing to

employ . . . . . . . . . . . . . . . . . . . . . . . . 127–33 National Insurance Fund,

claims against

See National Insurance Fund

sale of business, rights on . . . . . . . . . . . 133, 134–39 short term creditor, as . . . . . . . . . . . . . . . . 19

sums payable under new

contracts. . . . . . . . . . . . . . . . . . . 120–21, 128 termination payments . . . . . . . . . . . . . . 128, 129–30, 132

Transfer of Undertakings

Regulations . . . . . . . . . . . . . . . . 133, 134–37

Enforcement of judgment debt

attachment of earnings

order . . . . . . . . . . . . . . . . . . . . . . . . 39, 41–42 charging order . . . . . . . . . . . . . . . . 39, 43–44 distress for rent. . . . . . . . . . . . . . . . 37, 44–46 Enforcement Review . . . . . . . . 38, 39, 41, 43 fieri facias, writ of . . . . . . . . . . . . . . . . . . . . 40 freezing injunction . . . . . . . . . . . . . . . . . . . 39 generally . . . . . . . . . . . . . . . . . . . . . . . . 37–38 obtaining information . . . . . . . . . . . . . . . . 39 oral examination. . . . . . . . . . . . . . . . . . . . . 39 seizure of goods . . . . . . . . . . . . . . . . . . . . . 40 solvent debtor, against. . . . . . . . . . . . . 39–44 statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 taking control of goods . . . . . . . . . . . . 40–41 third party debt order . . . . . . . . . . 39, 42–43 White Paper on Effective

Enforcement . . . . . . . . . . . . . . . . . . . . 38, 40, 41, 44, 45

European Convention on Human Rights

disqualification proceedings . . . . . . . . . 257 distress for rent, and . . . . . . . . . . . . . . . . . 46 investigation of bankrupts . . . . . . . 199, 225 Official Receiver’s deposit,

payment of. . . . . . . . . . . . . . . . . . . . . . . . 153 presumption of innocence . . . . . . . . . . . 243 silence, right to . . . . . . . . . . . . . . . . . 232, 233

European Council Regulation

on insolvency proceedings . . . . . . . 419–21 Excessive pension contributions . . . . . . . 357 Execution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Extortionate credit bargains . . . . . . . . . . . 356

F

False representations to creditors . . . . . . 246 False statements. . . . . . . . . . . . . . . . . . . . . . 238 Falsification of books

and papers . . . . . . . . . . . . . . . . . . . . 238, 245 Family home

beneficial ownership . . . . . . . . . . . . . . . . 300 division of proceeds of sale . . . . . . . 304–05 generally . . . . . . . . . . . . . . . . . . . . . . . 297–99 rights of family to remain in

occupation . . . . . . . . . . . . . . . . . . . . . 303–04 sale where home not owned

solely by bankrupt . . . . . . . . . . . . . 300–303

Fieri facias, writ of . . . . . . . . . . . . . . . . . . . . 40

Fixed charge

enforcement. . . . . . . . . . . . . . . . . . . . . . . . . 49 floating charge distinguished. . . . . . 332–36 generally . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Floating charge

administration, and . . . . . . . . . . . . . . . . . 118 appointment of administrator

by holder of . . . . . . . . . . . . . . . . . 49, 106–07 criticism of. . . . . . . . . . . . . . . . . . . . . . . . . . 50 enforcement. . . . . . . . . . . . . . . . . . . . . . . . . 49 Enterprise Act 2002,

effect of . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 fixed charge distinguished . . . . . . . . 332–36 generally . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 preferential debts, and. . . . . . . . . . . . 404–05 security, enforcement of . . . . . . . . . . 336–38

France. . . . . . . . . . . . . . . . . . . . . . . 62–63, 69–70

Fraud

in anticipation of winding up. . . . . . . . . 244 fraudulent dealing with

property obtained on credit . . . . . . . . . 239

fraudulent disposal of property . . . . 238–39 fraudulent trading . . . . . . . . . . . . . . . 364–65 transactions in fraud of creditors . . . . . . 244

Freezing injunction. . . . . . . . . . . . . . . . . . . . 38

Funding litigation assets under control of

insolvency practitioner,

from . . . . . . . . . . . . . . . . . . . . . . . . . . 376–80 champerty . . . . . . . . . . . . . . . . . . . . . . 380–85 Community Legal Service. . . . . . . . . 385–87 conditional fee orders . . . . . . . . . . . . . . . 388 generally . . . . . . . . . . . . . . . . . . . . . . . 375–76 maintenance . . . . . . . . . . . . . . . . . . . . 380–81 third party costs order . . . . . . . . . . . . 387–88

G

Garnishee order

See Third party debt order

Germany . . . . . . . . . . . . . . . . . . . 63, 70, 203–04

Goods

See Assets

Greene Committee . . . . . . . . . . . . . . . . . . . 241

Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . 22–23

See also Security

Guarantor . . . . . . . . . . . . . . . . . . . . . . . . . 22–23 double proof, rule against. . . . . . . . . 277–78 insolvent company, of . . . . . . . . . . . . . . . . 30

H

Hire-purchase. . . . . . . . . . . . . . . . 18, 19, 20, 27

moratorium, effect of . . . . . . . . 110, 112, 114

Home

See Family home

Human rights

See European Convention on

Human Rights

I

Individual voluntary arrangement

advantages of . . . . . . . . . . . . . . . . . . . . . . . 61 agreement of creditors. . . . . . . . . . . . . . . . 13 alterations to . . . . . . . . . . . . . . . . . . . . 101–02 application for interim order . . . . . . . 86–87 approval. . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 challenge to . . . . . . . . . . . . . . . . . . . . . 100–01 claimant with unliquidated

claim, effect on . . . . . . . . . . . . . . . . . . 99–100 concertina order . . . . . . . . . . . . . . . . . . . . . 87

Cork Committee . . . . . . . . . . . . . . . 61–62, 85 creditors’ consideration of

proposals . . . . . . . . . . . . . . . . . . . . . . . 93–95 debtor’s petition, effect of . . . . . . . . . 153–54 default under, petition for

bankruptcy in connection

with . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 failure, consequences of . . . . . . . . . . 102–03 fast-track . . . . . . . . . . . . . . . . . . . . . 88, 95, 97 generally . . . . . . . . . . . . . . . . . . . . . 13, 85, 86 implementation . . . . . . . . . . . . . . . . . . . . 101 interim order. . . . . . . . . . . . . . . 86–88, 90–91 introduction of . . . . . . . . . . . . . . . . . . . . . . 61 material irregularities . . . . . . . . . . . . . . . 101 Official Receiver, and. . . . . . . . . . . . . . . . . 86 operation of. . . . . . . . . . . . . . . . . . . . . 103–04 partners . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 third parties, effect on . . . . . . . . . . . . . 98–99 unfair prejudice . . . . . . . . . . . . . . . . . 100–01 variation of . . . . . . . . . . . . . . . . . . . . . 101–02 with interim order . . . . . . . . . . . . . . . . 86–88 without interim order . . . . . . . . . . . . . . . . 88 wives . . . . . . . . . . . . . . . . . . . . . . . . . . 100–01

Insolvency

definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Insolvency Practices

Council . . . . . . . . . . . . . . . . . . . . 204, 217–18 Insolvency practitioners

authorisation. . . . . . . . . . . . . . . . . . . . 208–09 charges . . . . . . . . . . . . . . . . . . . . . . . . . 219–21 conflicts of interest . . . . . . . . . . . . . . . 209–10 control of . . . . . . . . . . . . . . . . . . . . . . . 209–16 court control . . . . . . . . . . . . . . . . . . . . 213–15 creditors and creditors’

committees . . . . . . . . . . . . . . . . . . . . 212–13 employees, immediate

dismissal of . . . . . . . . . . . . . . . . . . . . 127–28 funding litigation

See Funding litigation

generally . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 inspection of . . . . . . . . . . . . . . . . . . . . . . . 211 insurance . . . . . . . . . . . . . . . . . . . . . . . . . . 209 interim orders . . . . . . . . . . . . . . . . . . . . . . . 87 liquidators . . . . . . . . . . . . . . 166–69, 182–83,

204, 213–15, 219, 224 monitoring. . . . . . . . . . . . . . . . . . . . . . . . . 211

Ombudsman, proposal for . . . . . . . . 215–16 qualification requirements . . . . . . . . 207–09 record-keeping . . . . . . . . . . . . . . . . . . . . . 211 regulation of . . . . . . . . . . . . . . . . . . . . 204–05

standards . . . . . . . . . . . . . . . . . . . . . . . 216–18 trustee in bankruptcy

See Trustee in bankruptcy

withdrawal of authorisation. . . . . . . . . . 212 withdrawal of licence. . . . . . . . . . . . . 211–12

Insolvency Regulation

Working Party . . . . . . . . . . . . . 204, 216, 217

Insolvency Service . . . . . . . . . . . . . . . . 67, 203, 205–06 disqualification of directors . . . . . . . 264–65

funding of . . . . . . . . . . . . . . . . . . . . . . 218–19 monitoring of insolvency

practitioners. . . . . . . . . . . . . . . . . . . . . . . 211

Insolvency Service Review

Group Report . . . . . . . . . . . . . . . . . 66–68, 83 Insurance against liabilities . . . . . . . . 389–90 International insolvency

See Cross-border issues

Investigation of insolvency

bankruptcy . . . . . . . . . . . . . . . . . 223, 225–26, 227, 230 corporate insolvency. . . . . . . . . 224–25, 226, 227–29

court assistance. . . . . . . . . . . . . . . . . . 227–29 European Convention on

Human Rights. . . . . . . . . . . . . . . . . 199, 225 extent of obligation . . . . . . . . . . . . . . 223–26 information, duty to supply . . . . . . . 225–26 Official Receiver’s duty . . . . . . . . . 162, 207, 223, 224, 225, 226

public examination . . . . . . . . . . . . . . 230–31 silence, right to . . . . . . . . . . . . . . . . . . 232–33

Ireland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

J

Jenkins Committee . . . . . . . . . . . . . . . . . . . 241 Joint Insolvency

Committee . . . . . . . . . . . . . . . . . 204, 216–17 Joint Insolvency

Monitoring Unit . . . . . . . . . . . . . . . . . . . 211 Justice Report on

Bankruptcy 1975 . . . . . . . . . . . . . . . . . . . . 12

Limited liability companies

generally . . . . . . . . . . . . . . . . . . . . . 10, 32–33, 200, 201 history of . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

liquidation offences . . . . . . . . . . . . . . 243–46 offences

See Offences

phoenix companies . . . . . . . . . . . . . . 33, 201, 241–43, 266

Limited liability

partnerships . . . . . . . . . . . . . . . . . . . . . 31–32 claw-back. . . . . . . . . . . . . . . . . . . . . . . . . . 357

Liquidation

See Compulsory liquidation;

Voluntary liquidation

Liquidation committee. . . . . . . . . . . . 168, 182 Loan credit . . . . . . . . . . . . . . . . . . . . . 19, 20–21 London Approach . . . . . . . . . . . . . . . . . . 77, 83 London Bankruptcy Court. . . . . . . . . . . . . . 10

M

Mail order . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Mareva injunction. . . . . . . . . . . . . . . . . . . . . 38 Misconduct in course of

winding up . . . . . . . . . . . . . . . . . . . . . . . . 245 Misfeasance applications

directors’ breach of

fiduciary duty . . . . . . . . . . . . . . . . . . 362–63 directors’ common law

duty of care . . . . . . . . . . . . . . . . . . . . . . . 362 directors’ duty to consider

interests of creditors. . . . . . . . . . . . . . . . 363 proceeds of s 212

application . . . . . . . . . . . . . . . . . . . . . . . . 363

Money advice. . . . . . . . . . . . . . . . . . . . . . 71–74 Mortgage. . . . . . . . . . . . . . . . . . . . 20, 21, 22, 27 Mortgagee

appointment of receiver . . . . . . . . . . . 49–50 remedies of . . . . . . . . . . . . . . . . . . . . . . 46–47

Muir Mackenzie Committee . . . . . . . . . . . . 11

Mutual credit and set-off

See Set-off

L

Land

charging orders, and . . . . . . . . . . . . . . 43–44

Law Merchant . . . . . . . . . . . . . . . . . . . . . . . . . 7

N

Name of company

leave to use prohibited name . . . . . . 263–64 preventing re-use of. . . . . . . . . . . . . . 261–63

National Insurance Fund categories of guaranteed

payments . . . . . . . . . . . . . . . . . . . . . . . . . 391 claims against . . . . . . . . . . . . . . . . . . . 390–94 complaints against . . . . . . . . . . . . . . . . . . 393 generally . . . . . . . . . . . . . . . . . . . . . . . . . . 390 identifying employees . . . . . . . . . . . . 393–94 payments guaranteed

under s 184 of the Employment

Rights Act 1996 . . . . . . . . . . . . . . . . . 391–92 redundancy payments. . . . . . . . . . . . . . . 391 statutory ceiling and other

limits, validity of. . . . . . . . . . . . . . . . 392–93

New Zealand . . . . . . . . . . . . . . . . . . . . . 63, 298

O

Offences

absconding . . . . . . . . . . . . . . . . . . . . . . . . 239 bankruptcy . . . . . . . . . . . . . . . . . 162, 237–40 concealment of books and

papers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 concealment of property . . . . . . . . . . 237–38 corporate insolvency . . . . . . . . . . . . . 244–46 disqualification order,

contravention of . . . . . . . . . . . . . . . . 246–47 engaging in business . . . . . . . . . . . . . 239–40 false representations to

creditors . . . . . . . . . . . . . . . . . . . . . . . . . . 246 false statements . . . . . . . . . . . . . . . . . . . . 238 falsification of books and

papers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 falsification of company

books. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245 fraud in anticipation of

winding up . . . . . . . . . . . . . . . . . . . . . . . 244 fraudulent dealing with

property obtained on credit . . . . . . . . . 239 fraudulent disposal of

property . . . . . . . . . . . . . . . . . . . . . . . 238–39 material omissions from

statement of affairs. . . . . . . . . . . . . . . . . 245 misconduct in course of

winding up . . . . . . . . . . . . . . . . . . . . . . . 245 non-disclosure . . . . . . . . . . . . . . . . . . . . . 237 obtaining credit. . . . . . . . . . . . . . . . . . 239–40 transactions in fraud of

creditors . . . . . . . . . . . . . . . . . . . . . . . . . . 244

Official Receiver

bankruptcy, investigation of. . . . . . 162, 207, 223, 230

compulsory liquidation,

role in . . . . . . . . . . . . . . . . . 181, 206–07, 224 corporate insolvency,

investigation of . . . . . . . . . . . . 224, 226, 231 creditors’ meetings. . . . . . . . . . . . . . . . . . 160 deposit, payment of . . . . . . . . . . . . . . . . . 153 fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 functions of . . . . . . . . . . . . . . . . . . . . . 206–07 generally . . . . . . . . . . . . . . . . . . . . . . . 206–07 individual voluntary

arrangements, and . . . . . . . . . . . . . . . . . . 86 information to, duty

to supply . . . . . . . . . . . . . . . . . . . . . 224, 226 introduction of . . . . . . . . . . . . . . . . . . . . . . 11 investigation of

insolvency. . . . . . . . . . . . . . . . 162, 207, 223, 224, 226, 230, 231 powers of. . . . . . . . . . . . . . . . . . . . . . . . . . 206

public examinations. . . . . . . . . . . . . 230, 231 Scale . . . . . . . . . . . . . . . . . . . . . . . . . . 219, 221 trustee in bankruptcy, as . . . . . . . . . 159, 206

Ombudsman. . . . . . . . . . . . . . . . . . . . . . 215–16

Overdrafts. . . . . . . . . . . . . . . . . . . . . . 18, 20–21

P

Pari passu principle . . . . . . . . . . . . 8, 273, 395 Partnership administration

order. . . . . . . . . . . . . . . . . . . . . . . . . . . 124–25 Partnership Voluntary

Arrangement . . . . . . . . . . . . . . . 123–24, 125 Partnerships

bankruptcy of partner . . . . . . . . . . . . . . . . 31 collection and distribution

of the assets . . . . . . . . . . . . . . . . . . . . 191–92 creditors’ petition for

winding up . . . . . . . . . . . . . . . . . . . . 186–88 creditors’ petition for

winding up and concurrent

insolvency of partners . . . . . . . . . . . 189–92 disqualification of partners

and officers of partnerships . . . . . . . . . 195 generally . . . . . . . . . . . . . . . . . . . . . . . . 30–32, 63, 185–86

individual voluntary

arrangements . . . . . . . . . . . . . . . . . . . . . 124 joint bankruptcy petition by

all members . . . . . . . . . . . . . . . . . . . . 194–95 jurisdiction . . . . . . . . . . . . . . . . . . . . 187, 188 liability of partners. . . . . . . . . . . . . . . . 30–31 limited liability partnerships . . . . . . . 31–32

member’s petition for

winding up . . . . . . . . . . . . . . . . . . . . 188–89 member’s petition for

winding up and insolvency

of all members. . . . . . . . . . . . . . . . . . 193–94

Payne Committee . . . . . . . . . . . . . . . . . . . . . 72

Pension

bankrupt, of. . . . . . . . . . . . . . . . . . . . . 306–07 excessive contributions . . . . . . . . . . . . . . 357

Phoenix companies . . . . . 33, 201, 241–43, 266 Pledge . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21, 47

See also Security

Preferences

definition . . . . . . . . . . . . . . . . . . . . . . . 354–55 generally . . . . . . . . . . . . . . . . . . . . . . . 60, 354 persons benefiting from

recoveries . . . . . . . . . . . . . . . . . . . . . . . . . 356 relevant time . . . . . . . . . . . . . . . . . . . . 355–56 remedies . . . . . . . . . . . . . . . . . . . . . . . . . . 356

Preferential creditors

abolished categories. . . . . . . . . . . . . . . . . 402 history . . . . . . . . . . . . . . . . . . . . . . . . 400–401 ‘relevant date’ . . . . . . . . . . . . . . . . . . . 401–02 remaining categories . . . . . . . . . . . . . . . . 402 subrogation . . . . . . . . . . . . . . . . . . . . . . . . 403

Preferential debts

distress for rent, and . . . . . . . . . . . . . 403–04 floating charges, and . . . . . . . . . . . . . 404–05

Property

See Assets

Proving debts periodical maintenance

payments . . . . . . . . . . . . . . . . . . . . . . . . . 277 procedure for . . . . . . . . . . . . . . . . . . . 278–79 provable debts . . . . . . . . . . . . . . . . . . 275–77 quantification of claims . . . . . . . . . . . . . . 279 rule against double proof . . . . . . . . . 277–78 set-off

See Set-off

R

R3

See Association of Business

Recovery Professionals

Receivables financing . . . . . . . . . . . . . . . . . 16

Receiver

See also Administrative receiver; Official Receiver

appointment of . . . . . . . . . . . . . . . . . . . 49–50 generally . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Receivership

See also Administrative receivership

Cork Committee . . . . . . . . . . . . . . . . . . . . . 50 criticism of. . . . . . . . . . . . . . . . . . . . . . . . . . 50 generally . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 history of . . . . . . . . . . . . . . . . . . . . . . . . 49–51 statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Recognised Professional

Bodies . . . . . . . . . . . . . . . . . . . . 211, 217, 218 Redundancy payments. . . . . . . . . . . . 128, 391 Rent

See Distress for rent

Report of the Review

Committee on Insolvency

Law and Practice

See Cork Committee and Report

Rescue culture

business, and. . . . . . . . . . . . . . . . . . . . . 63–70 Cork Committee . . . . . . . . . . . . . . . . . . 59, 60 employees . . . . . . . . . . . . . . . . . . . . . . 127–39 generally . . . . . . . . . . . . . . . . . . . . . . 4, 12, 59 individuals, and . . . . . . . . . . . . . . . . . . 60–63 United States. . . . . . . . . . . . . . . . . . . . . . . . . 4

Retention of title by seller

‘all moneys’ clause . . . . . . . . . . . . . . . . . . 318 attempts to claim substitute

goods . . . . . . . . . . . . . . . . . . . . . . . . . 317–18 claims to proceeds of

sub-sales. . . . . . . . . . . . . . . . . . . . . . . 316–17 incorporation of clause

into contract. . . . . . . . . . . . . . . . . . . . . . . 319 introduction of . . . . . . . . . . . . . . . . . . 315–16 practical effect of claims . . . . . . . . . . 319–20 successive retention

of title . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319

Roman law . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

S

Sale credit

conditional sale. . . . . . . . . . . . . . . . . . . . . . 20 credit sale. . . . . . . . . . . . . . . . . . . . . . . . . . . 20 forms of . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 hire-purchase . . . . . . . . . . . . . . . . . 18, 19, 20 nature of. . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 secured loan distinguished. . . . . . . . . 23–25 transfer of possession . . . . . . . . . . . . . . . . 20

Schemes of arrangement . . . . . . 82–83, 85, 89 Scotland. . . . . . . . . . . . . . . . . . . . . . . . . . 203–04

Security

assets, over . . . . . . . . . . . . . . . 21–22, 327–39 charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 ‘charge-back’ to bank. . . . . . . . . . . . . 338–39 contractual lien . . . . . . . . . . . . . . . . . . . 21, 47 enforcement of . . . . . . . . . . . . 46–47, 327–39 equitable charge . . . . . . . . . . . . . . . . . . 21–22 fixed charge. . . . . . . . . . . . . . . . . . . . . . . . . 22 fixed and floating charges

distinguished . . . . . . . . . . . . . . . . . . 332–36 floating charge . . . . . . . . . . . . . . . . . . . . . . 22 guarantee. . . . . . . . . . . . . . . . . . . . . . . . 22–23 mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 personal security . . . . . . . . . . . . . . . . . 22–23 pledge . . . . . . . . . . . . . . . . . . . . . . . . . . 21, 47 registration of charges . . . . . . . . . . . . 330–32 remedies of mortgagee . . . . . . . . . . . . 46–47 secured loan and sale credit

distinguished. . . . . . . . . . . . . . . . . . . . 23–25 validity of . . . . . . . . . . . . . . . . . . . . . . 327–29 vulnerability of floating

charges . . . . . . . . . . . . . . . . . . . . . . . . 336–38

Seizure of goods . . . . . . . . . . . . . . . . . . . . . . 40

Set-off

circumstances in which

set-off applies . . . . . . . . . . . . . . . . . . 281–83 contingent liabilities. . . . . . . . . . . . . . . . . 283 dealings . . . . . . . . . . . . . . . . . . . . . . . . . . . 281 effect of. . . . . . . . . . . . . . . . . . . . . . . . . . . . 283 generally . . . . . . . . . . . . . . . . . . . . . . . 279–81 limitations on

application of. . . . . . . . . . . . . . . . . . . . . . 284 multiple bank accounts . . . . . . . . . . . . . . 284 mutuality . . . . . . . . . . . . . . . . . . . . . . . 281–82

Silence, right to . . . . . . . . . . . . . . . . . . . 232–33 Social Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Society of Practitioners of

Insolvency. . . . . . . . . . . . . . . . . . . . . . . . . 216 Sole traders. . . . . . . . . . . . . . . . . . . . . 30, 33, 63 South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Statement of affairs. . . . . . . . . . . . . . . . . . . 226 material omissions from . . . . . . . . . . . . . 245

Statements of Insolvency

Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . 216

Statutory demand

challenge to . . . . . . . . . . . . . . . . . . . . . 146–50 corporate debtor,

challenge by. . . . . . . . . . . . . . . . . . . . 149–50 forms of . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 generally . . . . . . . . . . . . . . . . . . . . . . . . . . 145

individual debtor,

challenge by. . . . . . . . . . . . . . . . . . . . 147–49 service of . . . . . . . . . . . . . . . . . . . . . . . 145–46

Store cards . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Student loans . . . . . . . . . . . . . . . . . . . . . . . . . 19 Subsidiaries

liability for insolvency of . . . . . . . . . 371–73

Survey of Company Insolvency . . . . . . . . . 35

T

Taking control of goods . . . . . . . . . . . . . 40–41 Task Force on

Overindebtedness. . . . . . . . . . 29, 71–72, 73 Third party debt order . . . . . . . . . . . 39, 42–43 Third party liability

fraudulent trading . . . . . . . . . . . . . . . 364–65 generally . . . . . . . . . . . . . . . . . . . . . . . . . . 359 insolvent subsidiaries, for. . . . . . . . . 371–73 misfeasance applications. . . . . . . . . . 361–63 payments by contributories . . . . . . . 360–61 wrongful trading . . . . . . . . . . . . . . . . 365–71

Tracing property . . . . . . . . . . . . . . . . . . 311–13

Transactions at an undervalue

definition . . . . . . . . . . . . . . . . . . . . . . . 348–50 generally . . . . . . . . . . . . . . . . . . . . . . . 347–48 intended to defeat creditors . . . . . . . 350–51 remedies . . . . . . . . . . . . . . . . . . . . . . . 352–53 within relevant period. . . . . . . . . . . . . . . 352

Transactions in fraud of

creditors. . . . . . . . . . . . . . . . . . . . . . . . . . . 244

Transfer of undertakings . . . . . . . 133, 134–37

Trustee in bankruptcy

See also Insolvency practitioners

appointment of . . . . . . . . . . . . . . 159–60, 204 ceasing to hold office . . . . . . . . . . . . . 161–62 fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 function of . . . . . . . . . . . . . . . . . . . . . . . . . 159 funding litigation

See Funding litigation

Official Receiver as. . . . . . . . . . . . . . . . . . 159 powers of. . . . . . . . . . . . . . . . . . . . . . . . . . 161 removal of . . . . . . . . . . . . . . . . . 161, 213, 214

Trusts

constructive trusts . . . . . . . . . . . . . . . 324–26 equitable interests under. . . . . . . . . . 320–26 express trusts . . . . . . . . . . . . . . . . . . . 322–23 resulting trusts . . . . . . . . . . . . . . . . . . 323–24

U

UNCITRAL Model Law on

Cross-border Insolvency . . . . . . . . . . . . 422 United States. . . . . . . . . . . . . . . . . . . . 4, 25, 59, 63, 68, 298

Unpaid seller’s rights . . . . . . . . . . . . . . . . . 320

V

Voluntary liquidation appointment of

liquidator . . . . . . . . . . . . . . . . . . 166–67, 204 cessation of directors’

powers . . . . . . . . . . . . . . . . . . . . . . . 166, 168 commencement of . . . . . . . . . . . . . . . 165–66 consequences of . . . . . . . . . . . . . . . . . . . . 166 control of . . . . . . . . . . . . . . . . . . . . . . . 166–69 conversion from members’

voluntary liquidation to creditors’ voluntary

liquidation . . . . . . . . . . . . . . . . . . . . . . . . 166 creditors’ meeting . . . . . . . . . . . . . . . . . . 166 creditors’ voluntary

liquidation . . . . . . . . . . . . . . . . . . . . 165, 166 effect of. . . . . . . . . . . . . . . . . . . . . 271, 272–74 end of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 funding litigation

See Funding litigation

generally . . . . . . . . . . . . . . . . . . . . 11, 13, 165 inability to swear statutory

declaration of solvency . . . . . . . . . . . . . 165 investigation . . . . . . . . . . . . . . . . . . . 224, 231 liquidation committee . . . . . . . . . . . . . . . 168

liquidator . . . . . . . . . . . . . . . . . . 166–69, 204, 213–15, 219, 224

members’ voluntary

liquidation . . . . . . . . . . . . . . . . . . . . 165, 166 offences

See Offences

petition for compulsory

liquidation . . . . . . . . . . . . . . . . . . . . . 179–80 proving debts

See Proving debts

public examination . . . . . . . . . . . . . . . . . 231 removal of liquidator. . . . . . . . . 167, 213–15 resolution of members. . . . . . . . . . . . . . . 165 statement of affairs. . . . . . . . . . . . . . . . . . 226 statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 stay of. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

W

Winding up

See Compulsory liquidation;

Voluntary liquidation

Workforce

See Employees

Writ of fieri facias . . . . . . . . . . . . . . . . . . . . . 40

Wrongful trading

consequences of liability for . . . . . . . . . . 370 persons liable for . . . . . . . . . . . . . . . . 368–69 s 14 of the Insolvency

Act 1986 . . . . . . . . . . . . . . . . . . . 366–68, 371 statutory provisions. . . . . . . . . . . . . . 365–66