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Fee Earner Q&A with Chris Brain
Chris Brain (pictured), joined Bermans in September 2020 and is a Solicitor in our Insolvency team. We spoke to him to learn more about him and his work.
A Practical Guide to Insolvency Procedures: What Private Company Directors Need to Know
Laura Bridson & James Whittaker
Navigating risk within insolvency scenarios
Whilst a company is solvent, company directors owe various statutory duties as specified by the Companies Act 2006 to the company’s shareholders (which can often be the same people).
Continue ReadingUnderstanding Director Disqualification
Megan Boyle
This article looks at the grounds for director disqualification as well as the legal framework that governs these processes and what directors should do if facing disqualification, empowering directors to better navigate their responsibilities and potential challenges.
Continue ReadingFee Earner Q&A with James Whittaker (Insolvency)
James Whittaker
James Whittaker (pictured), joined Bermans in 2019 and is a Partner in our Insolvency team. We spoke to him to learn more about him and his work.
Continue ReadingInsolvency Reform
Joe Thompson
In September, the government published its response to its consultation taken in 2021 on the future of insolvency regulation, setting out a package of proposed reforms that, in their own words “represent the biggest change to the way the insolvency profession is regulated in nearly 40 years and future-proof the regulatory framework as the insolvency market continues to evolve”.
Continue ReadingThe Insolvency Service continues its stance against BBLS abuse, as the number of director disqualifications more than doubled in a year
A Manchester law firm made a request under the Freedom of Information Act 2000 (FOI) in respect of the Bounce Back Loan scheme (BBLS), and the number of directors that were disqualified where the company had taken out a BBLS facility.
The response from the Insolvency Service published on 18 January 2023 provides insight into the largescale fraud and misuse of the scheme, since its inception in March 2020 following the Covid-19 pandemic, and the measures taken to clamp down on this abuse of the scheme. It found that the number of director disqualifications has more than doubled in just a year.
Continue ReadingBoris Becker is familiar with being in the spotlight for financial trouble
James Whittaker
In 2002 Becker was charged and convicted of tax evasion by Munich District Court after pleading guilty to evading about 1.7m euros tax by claiming to live in Monte Carlo at a time when his main residence was in Munich.
More recently, on 21 June 2017, Becker was declared bankrupt by the High Court following a petition from private bank Arbuthnot Latham presented against him on 28 April 2017 after Becker defaulted on loan repayments for a loan of circa £3.5m for a property in Mallorca.
Continue ReadingInsolvency update – are businesses facing a tough few months?
Phil Farrelly
The world of insolvency has been becalmed over the last 18 months as a result of Government support and restrictions on creditor action as part of its response to the Covid 19 pandemic which removed a number of the typical pressure points on directors.
As we head into a new phase of ‘living with the virus’, the support and restrictions are being withdrawn. The furlough scheme ended and some of those restrictions expired on 30 September 2021. From 1 October, the heat was back on or at least partially. There are still some restrictions on creditor action.
Continue ReadingA final extension on Covid business protection law?
Phil Farrelly
On the 22 June 2021 the Government extended, perhaps for the last time, the Coronavirus Act 2020 restrictions on issuing winding up petitions until 30 September 2021 (which is also when the furlough scheme ends) and landlord forfeiture/Commercial Rent Arrears Recovery until 25 March 2022.
It was assumed that other restrictions, such as the suspension of liability for wrongful trading, would also be extended but that was not the case and that suspension ended on 30 June 2021. So from 1 July 2021 directors can be sued for wrongful trading in respect of trading after 30 June which increases the deficit to creditors.
Continue ReadingInsolvency Round-up
Phil Farrelly
The latest Insolvency statistics
The latest insolvency stats have just been released by the Insolvency Service and it comes as no surprise to see the figures for the past nine months have been historically low- about 40% lower than normal- as companies continue to benefit from the Government support measures and the temporary restrictions on the ability to issue statutory demands and winding up petitions.
The rise in corporate (but not personal) insolvencies in the month of December 2020 did come as a bit of a surprise. There were a total of 1,228 registered company insolvencies, which comprised of:
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