Q&As

Paragraph 6 of the Temporary Insolvency Practice Direction Supporting the Insolvency Practice Direction covers the scenario where statutory declarations can take place via video conference. What if the parties involved are unable to access computers or smart phones. Can statutory declarations for a members' voluntary liquidation be made via telephone conference and/or proxy?

read titleRead full title
Copyright © 2025 LexisNexis
Published by a LexisNexis Restructuring & Insolvency expert
Published on: 02 March 2021

The coronavirus (COVID-19) pandemic has led to unprecedented social distancing measures and lockdowns being introduced. This in turn has had a significant impact on the ability of the courts, and court users, to carry out their normal functions. In order to deal with specific challenges relevant to Insolvency proceedings, a new Temporary Insolvency Practice Direction was introduced on 6 April 2020. It expired on 1 October 2020 and has been replaced several times (all in the same form), the most recent version of which, the Temporary Insolvency Practice Direction Supporting the Insolvency Practice Direction (TIPD), has effect from 30 June 2021 and expires on 30 September 2021. For further details on the Practice Direction on Insolvency Proceedings which the TIPD supports, see Practice Note: The Temporary Insolvency

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Insolvency definition
What does Insolvency mean?

This can be defined by two alternative tests (Insolvency Act 1986, s 123):

• cash flow test: a company is solvent if it can pay its debts as they fall due, no matter what the state of its balance sheet (Re Patrick & Lyon Ltd [1933] Ch 786);

• balance sheet test: a company which can pay its debts as they fall due may be insolvent if, according to its balance sheet, liabilities (including contingent liabilities) exceed assets.

Read more readmore

Popular documents

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the current registered owner? Or does the informal exoneration only apply to the parties to the document which informally exonerated the rentcharge?This Q&A considers the situation where, at some

Contributory negligence in personal injury claims

Contributory negligence in personal injury claimsContributory negligence is a partial defence which can lead to a discount in damages.Other defences may also be relevant. See Practice Notes: Did the claimant consent to the risk of injury? and Was the claimant involved in an illegal activity?If a

Can shares in a limited company that have not been paid-up at all be cancelled?

Can shares in a limited company that have not been paid-up at all be cancelled?A limited company having a share capital may not alter that share capital, except in the ways listed in section 617 of the Companies Act 2006 (CA 2006). Shares in a company cannot simply be cancelled without following an