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When you hear or read in the insolvency and restructuring sector that something is ‘presumed’, it means there is a legal presumption (emanating from statute) that it exists.
A presumption is a legal inference that must be made in light of certain facts.
Most presumptions are ‘rebuttable’, meaning that they are rejected if proven to be false, or at least thrown into sufficient doubt by evidence brought to counter the presumption.
Other presumptions are conclusive, meaning that they must be accepted to be true without any opportunity for rebuttal.
In the insolvency and restructuring sector there are a number of presumptions; examples are, insolvency is presumed in a transaction at an undervalue if the parties are ‘connected’ (see ‘Connected Parties’). Also, in a preference under section 239 Insolvency Act 1986 ‘desire’ is presumed if the parties are ‘connected’, unless sufficient evidence can be introduced to rebut the presumption.
Also, with a company’s centre of main interests (COMI) it is presumed to be the place the company is legally registered (unless evidence can be brought to prove otherwise, which is ‘rebutting the presumption’).
[See ‘Rebutted’, ‘Connected Party’, ‘Transaction at an Undervalue’, ‘Preference’, ‘Insolvency Act’, ‘Centre of Main Interests’ and ‘COMI’.]
A presumption is a legal inference that must be made in light of certain facts. It is a position that is taken to be true unless someone proves otherwise.
Most presumptions are ‘rebuttable’, meaning that they are rejected if proven to be false, or at least thrown into sufficient doubt by evidence brought to counter the presumption.
Other presumptions are conclusive, meaning that they must be accepted to be true without any opportunity for rebuttal.
