Home / Restructuring & Insolvency / Directors and insolvency / Directors' duties

Legal News

Dividends and loan repayments in a construction insolvency

Copyright © 2025 LexisNexis

Published on: 08 August 2016

Published by a LexisNexis Restructuring & Insolvency expert

Table of contents

Original news
What was the background to the appeal?
What were the legal issues the Court of Appeal had to decide?
What were the main legal arguments put forward?
What did the Court of Appeal decide, and why?
To what extent is the judgment helpful in clarifying the law in this area?
What practical lessons can those advising take away from this case?

Article summary

Restructuring & Insolvency analysis: What is the status of dividends and loan repayments in the context of insolvency? Simon Passfield of Guildhall Chambers, who represented the respondents in Evans v Jones, says when considering the balance sheet position of a company for the purposes of a claim under section 238 or section 239 of the Insolvency Act 1986 (IA 1986), it is necessary to consider the commercial reality of the position.

Popular documents

Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a

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

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid

Glossary—Latin legal terms

Glossary—Latin legal termsDespite attempts in recent years to simplify the language used in legal cases, there are still a number of Latin phrases commonly used in personal injury claims. The following Latin phrases are listed in alphabetical order:Latin