The Compendium

In insolvency and restructuring, the Limited Liability Partnership Regulations 2001 (LLP Regulations) adapt wording from the Insolvency Act 1986 (the principal statute for Insolvency Practitioners) and apply it to partnerships.

For example, section 214 Insolvency Act 1986 deals with wrongful trading by directors of a company. Regulation 214A of the LLP Regs adapts this section to partnerships and partners (replacing the words ‘companies’ and ‘directors’ respectively).

Have a look at section 214 Insolvency Act 1986 on wrongful trading, then compare the wording with section 214A of the Limited Liability Partnership Regulations 2001 (which you can access by doing a Google search of ‘214A Limited Liability Partnership Regulations 2001’).

(See ‘Companies House’, ‘Limited Liability Partnership Regulations’, ‘Partnership’ and ‘Insolvency Act’.]

Limited Liability Partnership Regulations 2001 (also 2009 and 2018)

This is the statute that deals with partnerships and limited liability partnerships (LLPs).

[See ‘LLPs’.]

Liquidation Committee

A Liquidation committee is a small group of representative creditors of a company in Liquidation appointed by all the creditors to assist the Liquidator in the discharge of their functions and to approve their remuneration.

A Liquidator does not need the sanction of the Liquidation committee or the court to be able to exercise the powers, which are set out in Schedule 4 of the Insolvency Act 1986.

The committee consists of at least three and no more than five elected creditors of the company. It can also include contributory members in certain circumstances (see ‘Contributory’.). A Liquidation committee can be established where a company is placed into Creditors’ Voluntary Liquidation, and where a company