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PRACTICE NOTES
Background to the Corporate Insolvency and Governance Act 2020 (CIGA 2020) Spurred on by the coronavirus (COVID-19) pandemic and a desire to mitigate the effect on businesses of the government-imposed lockdown, the Corporate Insolvency and Governance Bill received Royal Assent on 25 June 2020 resulting in the CIGA 2020. This followed the government’s previous consultation on proposed changes to the UK’s insolvency regime in 2016, its response to which was published on 26 August 2018 (see News Analysis: Exploring the government’s response to the insolvency and corporate governance consultation). Among the reforms, the CIGA 2020 introduced new provisions into the Insolvency Act 1986 (IA 1986) to ensure the continuity of essential supplies and restrict contractual termination provisions on insolvency (so-called ‘ipso facto’ clauses). For an overview of the CIGA 2020, see News Analysis: Corporate Insolvency and Governance Act 2020. What are ipso facto clauses? When a company is subject to an insolvency procedure, creditors often seek to improve their position by threatening to terminate their supply of goods or
PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. For more information, see subtopic: New and updated content in Practice Compliance. This Practice Note tells you, on a month-by-month basis, whether we have amended existing content or published new content in Practice Compliance. This content may have been added or amended to reflect regulatory changes or as part of our ongoing content development. December 2021 New or updated? Content Reason New Practice Notes:—Practice Compliance forecast as at 14 December 2021—Practice Compliance crime prevention forecast as at 14 December 2021 Content development New Precedent: DPIA or PIA approval form Content development New Practice Note: Coronavirus (COVID-19)—managing the workplace 30 November 2021 to 23 February 2022 [Archived] Content development to reflect latest government guidance. Updated Practice Note: Money Laundering Regulations 2017—governance and reporting lines Updated for SRA guidance on AML governance—Three Pillars of Success. Updated Practice Note: Trans, gender reassignment and gender identity issues in the workplace Updated to reflect Forstater and references
NEWS
This week's edition of Restructuring & Insolvency weekly highlights includes: a discussion on the powers of provisional liquidators (Aerovías Del Continente Americano v Versilia Solutions), an examination of disclosure applications in director disqualification claims (Lawless v The Secretary of State for Business and Trade), an analysis on service of a winding up petition on a default registered office (DG Resources Ltd v HMRC), plus a round-up of other news and cases for restructuring and insolvency professionals.
PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. This Practice Note considers the position in relation to service of documents from England and Wales on a defendant in an EU Member State where the process for service is commenced prior to 31 December 2020. This requires consideration of provisions in CPR 6 alongside the Withdrawal Agreement and the EU Commission’s Notice to Stakeholders dealing with civil justice. Different considerations apply if commencing service of documents after this date. For the position where service is being commenced on or after 1 January 2021, see Practice Note: Cross-border service—serving in an EU Member State. References to Part 6 and its associated practice direction in this Practice Note are to the provisions in force prior to 31 December 2020 at 11 pm: Key documents • Withdrawal Agreement—is defined in section 39(1) of the European Union (Withdrawal Agreement) Act 2020 (EU(WA)A 2020) as the agreement between the UK and the EU under Article 50(2) of the Treaty
PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. For more information, see subtopic: New and updated content in Risk and Compliance. This Practice Note keeps you informed, on a month-by-month basis, about amended existing content and newly-published content in Risk & Compliance. This content may have been added or amended to reflect regulatory changes or as part of our ongoing content development. December 2020 New or updated? Content Reason Updated Practice Notes:—Coronavirus (COVID-19)—employment data protection issues [Archived] Updated to reflect latest government guidance. Updated Practice Note: High-risk third countries trackerPrecedent: Table of high-risk third countries Updated to remove Mongolia as per EU delegated regulation issued on 9 December 2020. Updated Practice Note: Sanctions—reporting obligations Content maintenance Updated Practice Note: Sanctions regimes made under SAMLA 2018—tracker [Since removed] Updated to reflect new human rights designations. Updated Practice Note: Criminal records—asking questions and DBS checks Content maintenance Updated Practice Notes:—Brexit legislation tracker [Archived]—Brexit transition hub [Archived] Updated to reflect
PRACTICE NOTES
Introduction: emissions from transport Surface transport including road transport is a significant source of environmental emissions including air pollution, greenhouse gas (GHG) emissions and noise. It continues to be the largest source of GHG emissions in the UK, having overtaken power and industry in 2015. The three most significant sources of surface transport emissions are cars, vans and heavy goods vehicles (HGVs). Emissions fell sharply in 2020 (by 18%) as a result of the coronavirus (COVID-19) pandemic but have returned to high levels: see for example 2024 statistics from the Office of National Statistics which note that GHG missions from the transport sector have increased by 39.6% since 2021, largely driven by increasing activity after the pandemic. The World Health Organisation notes that the transport sector is responsible for a large proportion of air pollution, as well as being a leading source of GHG emissions. An estimated 4.2 million premature deaths are attributed to ambient (outdoor) air pollution. Higher air pollution concentrations increase the risk for cardiovascular and respiratory diseases, cancer and adverse birth outcomes, and are associated
PRACTICE NOTES
To a greater or lesser extent technological solutions have been employed at all stages of arbitral proceedings for decades. The coronavirus (COVID-19) pandemic and resultant travel restrictions and lockdowns necessitated an enhanced focus on how technology can be used by lawyers and arbitrators to promote fair and efficient proceedings on a global basis. Moreover, rapid advances in technology employed both by clients and in the legal sector (including the advancement in artificial intelligence (AI) technology), paired with increased cost and ESG pressures on practitioners, are placing a prominent spotlight on the way technology is employed in arbitration. When discussing technology in arbitration, it has historically been easy to think primarily in terms of e-discovery, electronic bundling and remote/hybrid hearings. However, technological concerns should and do pervade almost every aspect of an arbitration from the arbitration agreement and consideration of the underlying laws and procedural rules, to the choice of arbitrator, to case management and presentation, and even through to enforcement of the ultimate award. In addition to efficiency
PRACTICE NOTES
The Corporate Insolvency and Governance Act 2020 (CIGA 2020) was introduced as part of the government’s response to the economic impact of the coronavirus (COVID-19) pandemic. Among other reforms, CIGA 2020 inserted new provisions into the Insolvency Act 1986 (IA 1986), that are intended to ensure the continuity of supplies to businesses which are in financial difficulties and struggling to pay the supplier, and to restrict the operation of certain contractual rights in contracts for the sale and supply of goods upon insolvency. CIGA 2020 has significant implications for the construction industry. The provisions likely to impact parties to construction contracts are the restrictions on a supplier’s right to terminate or to do ‘any other thing’ where the customer is insolvent, as provided by IA 1986, s 233B (which was introduced by CIGA 2020, s 14). In the construction context, the customer for the purposes of the CIGA 2020 provisions will be the employer under a main contract or a consultant’s appointment, or, in sub-contracts,
PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. For developments, relating to the CRR in the EU and UK post Brexit, including the developments summarised in this Practice Note, see the following Practice Notes: EU CRD IV package—essentials, UK Capital Requirements Regulation (UK CRR)—technical standards [Archived], The EU banking package—CRD V, CRR II, BRRD II and SRMR II [Archived], Introduction to the UK prudential regime for banks, building societies and systemically important investment firmsFLASHCARD—EU CRR III, CRD VI and the ‘daisy chain’ proposal [Archived]. This Quick Look Brexit Financial Services Legislation Status Guide provides high-level information on the status of the Capital Requirements Regulation (EU) 575/2013 (the EU CRR), and Regulation (EU) 2019/876 (EU CRR II) which amends it, under UK law with effect from 1 January 2021. For more detailed information on the effect of Brexit on prudential regulation and the EU CRR, see Practice Note: Impact of Brexit: CRR and prudential regulation—quick guide [Archived]. For high-level information on the status of the coronavirus (COVID)-related
PRACTICE NOTES
Manufacturers of medicinal products must comply with certain minimum standards in their production processes. These minimum standards are known as good manufacturing practice (GMP). GMP requires that medicines are of consistent high quality, are appropriate for their intended use and meet the requirements of the marketing authorisation (MA) or clinical trial authorisation (CTA). The principles of GMP are applicable to the manufacture of both human medicinal products and veterinary medicinal products, as well as the active substances used in medicinal products and investigational medicinal products (IMPs) (ie medicines used in clinical trials). This Practice Note explores the legislation and guidelines that govern the manufacturing of medicinal products for human use, active substances and IMPs in the EU and in the UK. The coronavirus (COVID-19) pandemic significantly impacted the regulation of the manufacturing of medicinal products which falls outside the scope of this Practice Note. The extraordinary regulatory flexibilities for medicines during the COVID-19 pandemic addressed supply challenges and have now been phased out while lessons from the pandemic have driven proposals for
PRACTICE NOTES
This Practice Note summarises the law relating to quorum requirements for a company’s general meeting or annual general meeting (AGM) and discusses the minimum quorum requirements under the Companies Act 2006 (CA 2006) and the Model Articles for private companies limited by shares and the Model Articles for public companies as set out in Schedule 1 and Schedule 3 of the Companies (Model Articles) Regulations 2008, SI 2008/3229. A general meeting (including an AGM) must satisfy the relevant quorum requirements (be quorate) for business to be validly transacted at the meeting. If the relevant quorum requirements are not satisfied (ie, the meeting is inquorate), any business transacted will be void. In practice, quorum requirements are often set out in a company's articles of association. Where the articles contain no such provisions, then the relevant provisions of CA 2006 will apply. During the coronavirus (COVID-19) pandemic, and the resulting restrictions on gatherings, many companies, in line with emergency legislation and governmental guidance, changed the way in which they planned for, and held, their general
PRACTICE NOTES
ARCHIVED: The pilot scheme is set out in Practice Direction 51V (CPR PD 51V) and provides for applications to set aside default judgments, obtained under CPR 12, to take place using a video hearing. This is a separate process from that in use during the coronavirus pandemic which allows for remote hearings. For guidance, see Practice Note: Remote and hybrid hearings in civil proceedings. The pilot scheme applies in the Birmingham or Manchester Civil Justice Centres. The pilot scheme will apply unless a party objects or opts out of the pilot scheme. The 115th Update—Practice Direction amendments sets out the pilot scheme in its schedule. The pilot scheme has been extended and will now run until 31 March 2021 as provided for in the 122nd Update—Practice Direction Amendments. This Practice Notice considers the second video hearings pilot scheme. Note that both the first pilot scheme and this one have the same title and the same practice direction reference. For an explanation as to the requirement for the