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a lease) in respect of the property disclaimed. In effect the rights and obligations of both the tenant (represented by the Liquidator) and the landlord under the lease will be immediately terminated. As a result, the Liquidator will no longer be required to pay rent …
… and the landlord has no right to claim for future rent from the date of the disclaimer. Not only is the contract for lease disclaimed, the leasehold interest itself is extinguished.
The rights and liabilities of any other person are not affected, except so far as is necessary to release the insolvent estate, the insolvent and the Liquidator from any liability.
In effect, the officeholder could be disclaiming the most valuable asset in the insolvent estate; meaning that it cannot be sold or otherwise dealt with in the future. This is a big decision and one that will never be taken lightly.
There is no disclaimer in an Administration, but there does not need to be. The Moratorium within an Administration means that no person can instigate an action or start litigation against the company whilst it is in Administration, without the permission of the officeholder or leave of the court – neither of which will be easy to obtain.
[See ‘Insolvency Act’, ‘Liquidator’, ‘Administration’, ‘Officeholder’ and ‘Unsecured Claim’.]
Incorporation is the ‘birth’ of a company, after which it is a legal entity which can contract, litigate and purchase property in its own name. Dissolution, at the end of the corporate lifeline, is the death or end of the company.
The dissolution of a company is the last stage of the process of winding-up by a Liquidator. The process of dissolution of a company results in the termination of the legal entity from the company. It will be formally taken off the Register of Companies at Companies House.
Removing the name from the official register is also known as ‘striking off’. This is process whereby the Liquidator (or directors, where the company is solvent and all of its assets have been sold and creditors paid) will pay to take the company off the register of companies.
