Category: Case Law

personal guarantee bankruptcy petition winding up petition debt recovery

Are Funding Circle’s Personal Guarantees Enforceable?

Funding Circle personal guarantees are under legal scrutiny, with a High Court case questioning their enforceability. Many business owners face enforcement actions following loan transfers to Azzurro Associates. This article explores the implications, risks, and potential legal defences available to guarantors.

Tax Avoidance vs. Asset Concealment: Purkiss v Kennedy Limits HMRC’s Insolvency Powers

In Purkiss v Kennedy, the High Court rejected a liquidator’s attempt to recover unpaid PAYE and NICs from Ethos Solutions Ltd’s failed tax avoidance scheme. The court found no fraudulent intent to evade HMRC under Insolvency Act 1986, Section 423. This case highlights HMRC’s challenges in tax recovery via insolvency law and the need to prove intent.

Manolete Partners PLC v White

Manolete Case Study: Costs Order against Manolete Upheld Despite Outstanding Judgment Debt (Section 194 LSA 2007)

In Manolete Partners PLC v White, the Court of Appeal ruled that a pro bono costs order under Section 194 LSA 2007 for £85,000 payable to the Access to Justice Foundation (AJF) was unconditional and could not be set off against the pro bono party’s outstanding judgment debt, reinforcing the distinct legislative purposes of the provision.

Director Liability, Insolvency Act 1986, Manolete Partners, Connected Party Transactions, Breach of Fiduciary Duties, Insolvency Litigation Funding, Corporate Governance, Preferences, Knowing Receipt, ICC Judge Mullen

Manolete Case Study: Director Ordered to Repay £0.9m for Insolvency Duty Breach (Transactions at Undervalue)

The High Court ordered Norman Freed to repay £918,590 after causing Just Recruit Group Ltd to make substantial payments to connected companies while insolvent, breaching his fiduciary duties under the Companies Act 2006.