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than they would be in the ‘relevant alternative’. The company must also show the court that the Restructuring Plan has been approved by at least one class who would receive a payment under, or have a genuine economic interest in the ‘relevant alternative’.
[See ‘Corporate Insolvency and Governance Act 2020’, ‘CIGA’, ‘Shareholders’, ‘Scheme of Arrangement’ and ‘Registrar of Companies’.]
Retention of Title (RoT) is where a vendor, supplier or seller of assets, such as stock, retains legal title to it until it has been fully paid for. If the relevant payment is not made the vendor/supplier can go to the premises of the recipient company or individual and claim back their property, as long as it is still clearly identifiable and hasn’t been merged or incorporated with other materials or assets.
The legal documents (which will be part of the contract to buy/sell the assets) can state that the RoT is subject to a ‘simple clause’ (where title passes once the specific assets under that particular contract have been paid for) or an ‘all moneys clause’ (where title only passes once all moneys owed to that vendor/supplier have been paid for).
[See ‘Conditional Sale Agreement’.]
The term ‘right of occupation’ is mentioned in personal insolvency, usually relating to someone living in the main residence with a Bankrupt, be they a partner or dependent child.
In this context, a ‘right of occupation’ means a right to live in a property for a specified time, or for the beneficiary’s lifetime, but usually subject to conditions.
This is often a ‘beneficial’ or ‘equitable’ right. This means that there is not a legal right for the person to continue to live in the property, but it is fair and right for them to remain.
Section 337 Insolvency Act 1986 sets out the legal right to occupy. It states:
