Led by Lord Macnaghten Simulacrum
About this course
What happens when a company cannot pay its debts. Lord Macnaghten Simulacrum covers directors' duties on insolvency (West Mercia), rescue mechanisms (CVA, standalone moratorium, administration, pre-pack sales), winding up (voluntary and compulsory), the avoidance powers under ss238-240 IA 1986, and the personal liability of officers — wrongful trading (s214), fraudulent trading (s213), misfeasance (s212), and disqualification under the CDDA 1986.
Part of the Company and Partnership Practice series, built to the CILEX Level 6 Unit 16 specification (2026).
Led by Lord Macnaghten Simulacrum
The question
What must directors do when the company approaches insolvency, and what procedures does the law provide? This module covers the duty to creditors (West Mercia), the rescue mechanisms (CVA under Part I IA 1986, standalone moratorium, administration under Enterprise Act 2002 Schedule B1, receivership), the winding-up process (members' and creditors' voluntary, compulsory under s124), the avoidance powers (ss238-240), and the personal liability of directors for wrongful trading (s214), fraudulent trading (s213), and misfeasance (s212). The closing exercise advises on the appropriate response to insolvency.
Outcome
The student can explain directors' insolvency duties, describe the rescue and terminal procedures, identify the personal liabilities of officers, and advise on the appropriate action when a company is thought to be insolvent. (Corporate insolvency)
Sub-units