LAW 1149 · Company and Partnership Practice (English): Corporate Insolvency

Led by Lord Macnaghten Simulacrum

Corporate insolvency — directors' duties when the company cannot pay, rescue mechanisms (CVA, moratorium, administration), winding up, and the personal liability of company officers.

1. Module 1

   Corporate Insolvency

   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

   1. ○ 1.1 Directors' Duties in Insolvency Open this unit → ✓ ↻
   2. ○ 1.2 Company Voluntary Arrangements Open this unit → ✓ ↻
   3. ○ 1.3 Administration, Receivership and the Moratorium Open this unit → ✓ ↻
   4. ○ 1.4 Winding Up Open this unit → ✓ ↻
   5. ○ 1.5 Liabilities of Company Officers Open this unit → ✓ ↻
   6. ○ 1.6 Advising on Corporate Insolvency Open this unit → ✓ ↻
   Begin the course → Print certificate of completion