Brexit—impact on winding up
Brexit—impact on winding up

The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:

  • Brexit—impact on winding up
  • The Brexit vote
  • Relevant Brexit SIs
  • Winding up foreign companies
  • Outbound recognition (ie English liquidators seeking recognition elsewhere)
  • Example scenario: outbound recognition
  • Other issues arising

The Brexit vote

On 23 June 2016, the UK voted to leave the European Union (EU) by 52% to 48%, with a turnout of 72%, sending shock waves across the markets and economies worldwide (see: LNB News 24/06/2016 1).

We look at some of the likely issues for R&I lawyers and professionals relating to the winding up process under the Insolvency Act 1986 (IA 1986) and Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024.

This Practice Note is part of a suite of documents considering the impact of Brexit including:

  1. Brexit—impact on Recast Regulation on Insolvency: this Practice Note also considers transitional periods for insolvency proceedings opened prior to exit day

  2. Brexit—impact on administration

  3. Brexit—impact on company voluntary arrangements

  4. Brexit—impact on schemes of arrangement

  5. Brexit—impact on insolvent credit institutions

  6. Brexit—impact on insolvent insurers

Relevant Brexit SIs

Insolvency Brexit Regulations 2019

On 30 January 2019, the Insolvency (Amendment) (EU Exit) Regulations (Insolvency Brexit Regulations), SI 2019/146 were made under the affirmative procedure for Brexit SIs to address the deficiencies which will arise from the absence of mutual application of the Regulation (EU) 2015/848 Recast Regulation on Insolvency (Recast Regulation on Insolvency) and making consequential amendments (effective in part from 31 January 2019 and fully from exit day) to various legislation including the IA 1986 and the IR 2016, which