Insolvency Act 1986 s 110 arrangements
Produced in partnership with Phillip Taylor of Sidley Austin LLP and Chris Laughton of Mercer & Hole Chartered Accountants
Insolvency Act 1986 s 110 arrangements

The following Restructuring & Insolvency guidance note Produced in partnership with Phillip Taylor of Sidley Austin LLP and Chris Laughton of Mercer & Hole Chartered Accountants provides comprehensive and up to date legal information covering:

  • Insolvency Act 1986 s 110 arrangements
  • What is a s 110 arrangement?
  • Rationale for s 110 arrangements
  • Other options available
  • The requirements for s 110 arrangements
  • Benefits of s 110 arrangements
  • Potential complications in s 110 arrangements
  • Typical deal structure
  • Appointing the liquidator
  • Contents of a reconstruction agreement
  • more

This Practice Note covers:

  1. what arrangements under Insolvency Act 1986 (IA 1986), s 110 (a s 110 arrangement) is (see: What is a s 110 arrangement?)

  2. the rationale for s 110 arrangements (see: Rationale for s 110 arrangements)

  3. the other options available (see: Other options available)

  4. the requirements for s 110 arrangements (ie which companies can benefit from them) (see: The requirements for s 110 arrangements)

  5. the benefits of s 110 arrangements (see: Benefits of s 110 arrangements)

  6. potential complications in s 110 arrangements (see: Potential complications in s 110 arrangements)

  7. the typical deal structure (see: Typical deal structure)

  8. appointing the liquidator (see: Insolvency Act 1986 s 110 arrangements — Appointing the liquidator)

  9. typical contents of a reconstruction agreement (see: Contents of a reconstruction agreement)

  10. how s 110 arrangements can be challenged by dissenting shareholders (see: Challenge by dissenting shareholders), and

  11. a summary of likely tax issues (see: Tax issues)

What is a s 110 arrangement?

A section 110 arrangement is a statutory mechanism for dividing or de-merging businesses or assets held within or owned by a single legal entity, so that after the transaction they are held by two or more legal entities. There are a number of reasons why this might be desirable (see: Rationale for s 110 arrangements below) and a number of different ways of