Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
If a company trades while in financial difficulties, at what point does liability arise where the directors know or ought to know that there is no reasonable prospect of avoiding insolvent liquidation. Mark Mullen, barrister at Radcliffe Chambers considers the case of Re Ralls Builders Ltd.
Re Ralls Builders Ltd (in liquidation); Grant and another (Joint Liquidators of Ralls Builders Ltd) v Ralls and others  EWHC 243 (Ch),  All ER (D) 142 (Feb)
The Chancery Division ruled on the joint liquidators’ application for a declaration of wrongful trading that, although the directors of a company in administration ought to have concluded by a certain date that there was no reasonable prospect of the company avoiding insolvent liquidation, continued trading had not caused loss to the company overall or worsened the position of the creditors as a whole. Accordingly, no declaration was made under section 214(1) of the Insolvency Act 1986 (IA 1986), requiring the directors to make any contribution to the assets of the company in respect of any losses said to have been caused to the company during the period of wrongful trading.
This was a wrongful trading claim brought by the joint liquidators of Ralls Builders Limited against its former directors. The company operated in the construction industry and had been profitable to the end of October 2008. In the year to October 2009 it made trading losses as a result of disruption to its business in the winter months and liabilities incurred for defective works carried out by a sub-contractor. The company entered administration on 13 October 2010, moving to liquidation in January 2011. It had continued to trade until entering administration and its liquidators brought proceedings under IA 1986, s 214(1), seeking a declaration that the directors should contribute to the company in respect of losses caused by
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
Stephen qualified as a solicitor in 2005 and joined the Restructuring and Insolvency team at Lexis®PSL in September 2014 from Shoosmiths LLP, where he was a senior associate in the restructuring and insolvency team.
Primarily focused on contentious and advisory corporate and personal insolvency work, Stephen’s experience includes acting for office-holders on a wide range of issues, including appointments, investigations and the recovery and realisation of assets (including antecedent transaction claims), and for creditors in respect of the impact on them of the insolvency of debtors and counterparties.
0330 161 1234