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To do so there must be an ‘establishment’ in that jurisdiction (a place on nontransitory activity connected to humans and/or assets) and there will be a contract in that jurisdiction.
If the action taken in an establishment is a ‘terminal’ (Liquidation-type) proceeding, the party will, in effect, be attempting to wind up an ‘unregistered company’ (in that, it is not a ‘legal company’ registered in that jurisdiction).
In English & Welsh law an ‘unregistered company’ can be ‘wound-up’ if it has ‘sufficient assets’ in that jurisdiction. This is, it appears to have permanence in that jurisdiction, people who work there and appears to be a company.
If this action is taking place outside England & Wales the party taking the action will begin an action to ‘wind up’ an unregistered company under that jurisdiction’s version of ss220-221 Insolvency Act 1986.
[See ‘UNCITRAL’, ‘Cross Border Regulations 2006’, ‘Establishment’, ‘Liquidation’ and ‘Insolvency Act’.]
Unsecured creditors include trade creditors, suppliers, customers, contractors, some staff claims, rent arrears and lease dilapidations, unsecured loans from banks and lenders, unsecured overdrafts, friend and family loans to the business, directors loan accounts that are in credit, and the shortfall on any fixed or floating charge.
In a Liquidation, when the Liquidator is paying back creditors in accordance with the ‘hierarchy’ of repayments set out by the Insolvency Act 1986, unsecured creditors will be paid below all other creditors, but above any shareholders/ members of the company who have invested in the company, but receive payment last (and usually never in a Creditors’ Voluntary Liquidation).
[See ‘Liquidation’, ‘Liquidator’, ‘Creditors’ Voluntary Liquidation’ and ‘Insolvency Act’.]
