LEXLAW Solicitors & Barristers
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.
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.
Unregulated bridging loans are a short-term financing solution often used by UK property owners. Whether for swift property purchases, renovation projects, or addressing unexpected business costs, bridging finance can provide quick access to capital. However this is at significant cost and risk which some borrowers don’t understand. You must carefully consider the risks associated bridge loans. Seeking professional advice is crucial.
Former tennis champion Boris Becker was sentenced to two and a half years in prison after being found guilty of four charges under the Insolvency Act, 1986. Becker has now been discharged and is no longer Bankrupt.
In a significant shift, the Court of Appeal determined that unfair prejudice petitions under section 994 of the Companies Act 2006 have a 12-year statutory limitation period, reversing previous beliefs and affecting future legal approaches to such claims. This ruling, THG Plc v Zedra Trust Company (Jersey) Ltd [2024] EWCA Civ 158, changes the legal landscape for minority shareholder disputes, requiring a reevaluation of existing strategies and the potential for earlier claims.
The Court of Appeal upheld the High Court’s dismissal of Manolete Partners’ £849,278 claim against director Ebrahim Dalal, finding the evidence for alleged unreported sales too weak to meet the civil standard of proof. The case underscores the evidential challenges liquidators face when pursuing directors for purported accounting deficiencies.
Our Director Liability litigation team review this recent judgment where a liquidator lost a claim for breach of director’s duties over a tax avoidance scheme.
Following lifting of government lockdowns during the pandemic, enforcement action including bailiffs attending properties can now resume. There may also be changes to debt recovery legislation which protective measures were brought in during the pandemic to prevent aggressive debt recovery action from debtors affected by coronavirus. If you have received a county court judgment against you or your company, get in touch with our litigation team as soon as possible.
Given the complexity of business interruption claims and the legal uncertainty surrounding their enforcement, it is is essential that you seek expert legal advice early in order to prepare your Business Interruption Insurance claim.
This is another decision from the Chancellor of the High Court, which demonstrates that Court’s are likely to prioritise arbitration when it comes to disputed debts.