The Compendium

The form should not be used for:

• a proposed creditors’ decision procedure for either a Voluntary Arrangement or a Creditors’ Voluntary Liquidation;
• Law of Property Act Receiverships;
• the appointment of Receivers or managers under a fixed charge only;
• the appointment of Receivers over the assets of a farm estate under the Agricultural Credits Act 1928;
• the appointment of a Provisional Liquidator.

[See ‘VAT’, ‘HMRC’, ‘Liquidation’, ‘Administration’, ‘Trustee in Bankruptcy’, ‘Receiver’, ‘Creditors’ Voluntary Liquidation’ and ‘Provisional Liquidation’.]

Vest/Vesting

Vesting is a legal term that means to give or earn a right to a present or future payment, asset, or benefit.

For example, on the making of a Bankruptcy Order the property of the Bankrupt will ‘vest’ in the Trustee in Bankruptcy. This means that all rights over the property pass to the Trustee (who can sell it, etc.), even if the legal title remains with the Bankrupt. The Trustee has a beneficial interest in the property.

[See ‘Bankruptcy Order’, ‘Trustee in Bankruptcy’, ‘Legal Title’ and ‘Beneficial Interest’.]

Victim

Under section 423 Insolvency Act 1986 any action for a transaction defrauding creditors can be taken by a ‘victim’ of that transaction.

This is a director, an employee, a shareholder/member, a creditor and an officeholder.

All other antecedent or voidable transactions will be initiated by an officeholder.

[See ‘Insolvency Act’, ‘Director’, ‘Shareholder’, ‘Officeholder’, ‘Antecedent Transaction’ and ‘Voidable Transaction’.]