The Compendium

The appointment of a Liquidator in a voluntary Liquidation is a good example of a situation where a simple majority is required to be passed at a general meeting.

[See ‘Shareholder’, ‘Ordinary Resolution’, ‘General Meeting’ and ‘Voluntary Liquidation’.]

Small Debts

Creditors owed ‘small debts’ are excluded from the requirement to submit proofs of debts. The law states that a debt is classed as a ‘small debt’ if its value is equal to or less than £1,000.

[See ‘Proof of Debt’.]

Source

You may hear the words ‘source material’ or ‘going to source’. This relates to the full and original statute or legislation, such as the Insolvency Act 1986 or the Insolvency Rules 2016.

You can find such source materials:

• In Butterworths Insolvency Law Handbook;
• In Sealy and Milman;
• On the Internet, by typing in the statute (and section/rule/regulation) you require into a search engine and the full statutory reference is one of the first one or two entries that appear.

[See ‘Butterworths Insolvency Law Handbook’ and ‘Sealy and Milman’.]

Special Administrator/Special Administration

Special Administration is a process intended to support companies that provide a statutory or public service or supply, or that hold client money.

It applies to energy companies, pensions operators, banks and other lending institutions, higher education colleges, postal services, water companies, air traffic and others which, if they fail, it is the wider public interest to try and rescue.