the quorum from ‘two’ to ‘one’ shareholder in attendance in order for the general meetings to be validly formed.

The Articles of Association will also set out a quorum for a board meeting. A creditors’ or Liquidation committee meeting also has a quorum; this is a minimum of two creditors in attendance.

[See ‘Board Meeting’, ‘Creditors’ Committee’, ‘Liquidation Committee’, ‘Articles of Association’, ‘Quorate’ and ‘General Meeting’.]

R

R3

R3 is the trade association for insolvency and restructuring professionals. R3’s website says its members promote economic regeneration, resolve financial distress for businesses and individuals, save jobs and create the confidence and public trust which underpin trading, lending and investment.

R3 provides technical updates and training and provides support for its members.

[See ‘Insolvency Practitioners’ and ‘IP’.]

Ransom Payment

Ransom payment means a payment made in compliance with a demand or requirement. When a company or person enters into an insolvency event (such as Liquidation, Administration or Bankruptcy), a supplier may state they will deal with the officeholder, but first require a ‘ransom payment’ up front – effectively a guarantee to ensure delivery.

Termination clauses enable suppliers to withdraw services automatically when a business becomes insolvent. Ransom payments refer to the practice of charging additional payments, or requiring early payment of outstanding debts, as a condition of ongoing supply. Both practices reduce the chance of, and the funds available to support, a successful rescue.

[See ‘Liquidation’, ‘Administration’ and ‘Bankruptcy’.]