Q&As

Where a company has entered into creditors’ voluntary liquidation after issuing a claim against another company, is there a common law or CPR duty to notify a defendant of the liquidation? Furthermore, is there a common law or CPR duty to head court documents with the words ‘in liquidation’ after the claimant’s name? If there is, will future court documents need to be amended in this way?

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Produced in partnership with Eleanor Stephens
Published on LexisPSL on 05/09/2019

The following Restructuring & Insolvency Q&A produced in partnership with Eleanor Stephens provides comprehensive and up to date legal information covering:

  • Where a company has entered into creditors’ voluntary liquidation after issuing a claim against another company, is there a common law or CPR duty to notify a defendant of the liquidation? Furthermore, is there a common law or CPR duty to head court documents with the words ‘in liquidation’ after the claimant’s name? If there is, will future court documents need to be amended in this way?
  • What notification does a company in CVL need to give to creditors and others relevant parties once it has entered into CVL?

Where a company has entered into creditors’ voluntary liquidation after issuing a claim against another company, is there a common law or CPR duty to notify a defendant of the liquidation? Furthermore, is there a common law or CPR duty to head court documents with the words ‘in liquidation’ after the claimant’s name? If there is, will future court documents need to be amended in this way?

What notification does a company in CVL need to give to creditors and others relevant parties once it has entered into CVL?

Once a company is in creditors’ voluntary liquidation (CVL), the position of that company is governed generally by the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 except where otherwise stated.

The effect of a CVL is found under IA 1986, s 87. When a company enters into CVL, the company shall from the commencement of the winding up cease to carry on its business, except so far as may be required for its beneficial winding up. However, the corporate state and corporate powers of the company, notwithstanding anything to the contrary in its articles, continue until the company is dissolved.

For further reading, see Practice Note: The effect of a company voluntary winding-up—the position under The Insolvency (England and Wales) Rules 2016 and Creditors voluntary liquidation—the process post resolution

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