Q&As

The Insolvency (England and Wales) Rules 2016, SI 2016/1024, r 16.6 states that creditors are entitled to inspect proxies 'immediately before or during the meeting'. Is there any guidance on how far in advance would be considered 'immediately before'? Would it include the previous day?

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Published on: 19 July 2021

Where creditors choose to vote at meetings by proxy, other persons attending the meeting have a right to inspect those proxies. The Insolvency (England and Wales) Rules 2016, SI 2016/1024, r 16.6, provides that such inspection should be 'immediately before or during the meeting'. While we are not aware of any case law on this specific point, the courts have

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Jurisdiction(s):
United Kingdom
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.

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