6 April 2017 saw the introduction of new insolvency rules that might have a profound impact on the ability of creditors to nominate a Liquidator who will rigorously investigate the affairs of an insolvent company and its directors.
One of the purposes of the new rules is to modernise the structure of the rules and encourage the use of websites and electronic communications. Physical meetings will be the exception, not the norm. The new rules introduce the concept of ‘deemed consent’.
If a creditor does not respond to an approach from a Liquidator before the ‘decision date’ (which can be as short as three business days) then the creditor will have deemed to have consented to the decision or resolution. Any hesitation might therefore result in a creditor losing the ability to influence the appointment of a creditor friendly Liquidator.
If you’re a creditor and need advice, speak to our corporate recovery and insolvency expert Lee Bramley as soon as possible to discuss any communication received from a Liquidator .