Commentary

23.8 Insolvency and a corporate party

BOILERPLATE AND COMMERCIAL CLAUSES vol 4(3)
| Commentary

23.8 Insolvency and a corporate party

| Commentary

23.8 Insolvency and a corporate party

The standard form of insolvency clause for a corporate party usually runs as follows:

‘... if [party] becomes insolvent or goes into liquidation, either compulsory or voluntary (save for the purpose of reconstruction or amalgamation), or if an administrator, administrative receiver or receiver is appointed in respect of the whole or any part of its assets, or if [party] makes an assignment for the benefit of, or composition with, its creditors generally’

The following words, if added, will widen the effect of the clause considerably, but may be resisted by

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