Click here to learn more about our revolutionary app or download directly from one of the sources below.
enters into Compulsory Liquidation. There is no need for one in a Members’ Voluntary Liquidation, as the creditors will be paid in full and will take little, if any, interest in the proceedings.
A committee can be useful in the guidance of the officeholder where the matter is complex, or there is particular expertise required which creditors may have, some of whom are almost certainly in the same line of business. The officeholder also needs to report to the committee, so there is an element of ‘policing’ her activities, too.
Also, under the Insolvency Rules 2016 whenever an officeholder contacts the creditors (for example, to set up a qualifying decision procedure) they must always reference the setting up of a committee.
In reality, there are very few committees on cases, as creditors do not traditionally get involved with the day-to-day running of the case.
[See ‘Liquidator’, ‘Insolvency Act 1986’, ‘Contributory’, ‘Creditors’ Voluntary Liquidation’, ‘Compulsory Liquidation’, ‘Members’ Voluntary Liquidation’, ‘Officeholder’ and ‘Qualifying Decision Procedure’.]
Litigation is the process of taking a case to a court of law so that a judgment can be made.
[See ‘Execution’.]
Litigation funders provide insolvency and restructuring professionals with the finance to pay the litigation and other costs of taking an action (for example for misfeasance or wrongful trading).
Litigation funding, also known as ‘third party funding’ or ‘litigation finance’, is where a third party (with no prior connection to the litigation) agrees to finance all or part of the legal costs of the litigation, in return for a fee payable from the proceeds recovered by the funded litigant.
