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Covenants can be positive or negative. Positive covenants are obligations to do something, such as to maintain the premises in good order, or return the property to the state it was in at the time of taking out the lease. Restrictive covenants are rules preventing certain things from being done on the property, such as keeping animals, or using the property for residential purposes. There is usually a covenant stating what happens if capital and interest on the loan is not paid for a certain number of months.
If a property is registered, it is possible to view any covenants affecting it by downloading a copy of the title of the property from the Land Registry website. If the title is unregistered (not contained at the Land Registry)covenants can be found in your original documents or deeds creating it.
[See ‘Land Registry’.]
A creditors committee is a small group of representative creditors appointed by all the creditors to assist the officeholder in a corporate or personal insolvency matter in the discharge of their functions and to approve their remuneration.
The committee consists of at least three and no more than five elected creditors of the company. It can also include contributory members in certain circumstances.
A committee can be useful in the guidance of the officeholder where the matter is complex, or there is particular expertise required which creditors may have, some of whom are almost certainly in the same line of business. The officeholder also needs to report to the committee, so there is an element of ‘policing’ her activities, too.
Also, under the Insolvency Rules 2016 whenever an officeholder contacts the creditors (for example, to set up a qualifying decision procedure) they must always reference the setting up of a committee.
In reality, there are very few committees on cases, as creditors do not traditionally get involved with the day-to-day running of the case.
[See ‘Liquidator’, ‘Insolvency Act 1986’, ‘Contributory’, ‘Officeholder’ and ‘Qualifying Decision Procedure’.]
