Insolvency (SGSs 24,25) Flashcards
Circumstances in which a company may be wound up by the court
s.122 IA 1986
Potential penalties for directors of insolvent companies
s.212 IA 1986
Administration statutes are found in
Schedule B1 IA 1986
The holder of a qualifying floating charge in respect of a company’s property may appoint an administrator of the company
Para 14, Sch B1 IA 1986
Statute for Transactions at an Undervalue
s.238 IA 1986
‘Relevant time’ for transaction at an undervalue or preference if connected person is 2 years
s.240(1)(a) IA 1986
‘Relevant time’ for transaction at an undervalue or preference if NOT connected person is 6 months
s.240(1)(b) IA 1986
Company must have been insolvent or become insolvent as a consequence of the transaction for Preferences and Transaction at an Undervalue
s.240(2) IA 1986
Presumption of insolvency if transaction is with a connected person (Transaction at an Undervalue/Preferences)
s.240(2) IA 1986
Director risks being struck off for misfeasance
s.6 CDDA
Connected Person definition found in this statute
s.435 IA 1986
Wrongful Trading
s.214 IA 1986
[or s.246ZB IA 1986 to apply to administrators too]
Avoidance of floating charges
s.245 IA 1986
Preferences
s.239 IA 1986
If Preference can be established, court likely to make restoration order
s.241(1)(d) IA 1986