Corporate Insolvency Practice

Professor Mark Watson-Gandy OBE is a tenant at Three Stone Chambers, a specialist commercial chancery barristers’ chambers in Lincoln’s Inn. He is a Visiting Professor at the Universities of Westminster and Lorraine.

• Table of CasesTable of StatutesTable of Statutory InstrumentsTable of Practice Directions and Practice NotesTable of International MaterialTable of Forms and Guides1   Statutory Demand Statutory formServiceEvidenceNotesKey statutory provisionsSections 123 and 221 of the Insolvency Act 1986Rules 1.6 and 7.3 of the Insolvency (England and Wales) Rules 2016Precedent1.1  Creditor’s statutory demand2   Creditor’s Winding-up petition against a UK-registered Company ObjectivePetitionEvidenceCourt FeesServiceAdvertisement (notice of the petition)Certificate of complianceThe hearingKey statutory provisionsSections 122 to 125 and 221 of the Insolvency Act 1986Rules 7.4 to 7.15 of, and paragraphs 2 and 6 of Schedule 4 to, the Insolvency (England and Wales) Rules 2016Paragraphs 9.1 to 9.9 of Part Two of the CPR Practice Direction – Insolvency ProceedingsPrecedents2.1  Creditor’s winding-up petition2.2  Statement of truth verifying the winding-up petition2.3  Advertisement of a winding-up petition2.4  Certificate of compliance2.5  List of persons attending3   Responding to a Creditor’s Petition: Notice to Appear at the Hearing of a Petition ObjectiveNotice of intention to appearServiceCompany’s evidenceOther partiesKey statutory provisionsRules 7.14 to 7.18 of the Insolvency (England and Wales) Rules 2016Precedents3.1  Supporting creditor’s notice of intention to appear3.2  Supporting creditor’s application to be substituted as petitioner3.3  Order that a supporting creditor be substituted as petitioner4   Responding to a Statutory Demand: Application to Restrain the Presentation of a Petition Objective Warning letterApplicationCourt feesServiceEvidenceKey statutory provisionsRules 7.24 and 7.25 of the Insolvency (England and Wales) Rules 2016Paragraph 3.2 of Part One of the CPR Practice Direction – Insolvency ProceedingsPrecedents4.1  Application for an order restraining the presentation of a winding-up petition4.2  Witness statement in support of an application for an order restraining the presentation of a winding-up petition4.3  Draft minute of an order made without notice restraining the presentation of a winding-up petition5   Responding to a Petition: Application to Restrain the Advertisement of a Petition ObjectiveWarning letterApplicationCourt feesServiceWithout noticeEvidenceKey statutory provisionsRules 7.24 and 7.25 of the Insolvency (England and Wales) Rules 2016Precedents5.1  Application for an order to restrain advertisement5.2  Witness statement in support of an application for an order to restrain advertisement5.3  Draft minute of an order made without notice restraining the advertisement of a winding-up petition5.4  Draft minute of an order made on notice restraining the advertisement of a winding-up petition6   Responding to a Petition: Application for a Validation Order ObjectiveApplicationCourt feesEvidenceServiceKey statutory provisionsSections 127 to 129 of the Insolvency Act 1986Practice Direction – Order under section 127 of the Insolvency Act 1986Paragraph 9.11 of Part Two of the CPR Practice Direction – Insolvency ProceedingsPrecedents6.1  Application for a validation order6.2  Draft validation order6.3  Director’s witness statement in support of an application for a validation order6.4  Accountant’s witness statement in support of an application for a validation order7   Application to Rescind a Winding Up Order ObjectiveApplicationServiceCourt feesEvidenceKey statutory provisionsRule 12.59 of, and Schedule 5 to, the Insolvency (England and Wales) Rules 2016Paragraph 9.10 of Part Two of the CPR Practice Direction – Insolvency ProceedingsPrecedents7.1  Application to extend time and rescind the winding up order7.2  Witness statement in support of an application to extend time and rescind the winding up8   Winding-up petition on Just and Equitable GroundsObjectivePetitionEvidenceCourt feesServiceAdvertisementThe hearingKey statutory provisionsSections 122(1)(g) and 124 to 125 of the Insolvency Act 1986Rules 7.25, 7.26, 7.28, 7.29 and 7.31 of the Insolvency (England and Wales) Rules 2016Paragraph 22 of Part Seven of the CPR Practice Direction – Insolvency ProceedingsPrecedent8.1  Winding-up petition on just and equitable grounds9   Permission to Act as a Director of a Company with a Prohibited Name ObjectiveApplicationCourt feesEvidenceServiceThe first hearingKey statutory provisionsSections 216 and 217 of the Insolvency Act 1986Rules 1.6, 1.35 and 22.1 to 22.7 of the Insolvency (England and Wales) Rules 2016Precedents9.1  Application for permission to act as a director of a company with a prohibited name9.2  Draft order giving permission to act as a director of a company with a prohibited name9.3  Witness statement in support of an application for permission to act as a director of a company with a prohibited name10 Application for an Administration Order ObjectiveApplicationCourt feesConsent of the proposed administratorThe witness statementService on interested partiesThe first hearingKey statutory provisionsParagraphs 2, 3, 10 to 15 and 37 to 40 of Schedule B1 to the Insolvency Act 1986Rules 1.6 and 3.3 to 3.15 of, and paragraphs 3 and 6 of Schedule 4 to, the Insolvency (England and Wales) Rules 2016Precedents10.1 Administration application notice10.2 Statement of proposed administrator10.3 Witness statement in support of an administration order and to dismiss a winding-up petition10.4 Administration order (dismissing an existing winding-up petition)11 Application for Directions by an Administrator ObjectiveApplicationCourt feesEvidenceServiceThe first hearingKey statutory provisionsParagraph 63 of Schedule B1 to the Insolvency Act 1986Rules 1.6 and 1.35 of the Insolvency (England and Wales) Rules 2016Precedents11.1 Application by the administrator for directions11.2 Witness statement in support of an application for directions11.3 Directions12 Application by an Administrator to Sell Property Subject to Security ObjectiveApplicationCourt feesEvidenceServiceOrderKey statutory provisionsParagraphs 70 to 73 and 111 of Schedule B1 to the Insolvency Act 1986Rules 1.6, 1.35 and 3.49 of the Insolvency (England and Wales) Rules 1986Precedents12.1 Application by the administrator for an order permitting the administrator to sell company’s property subject to a security12.2 Witness statement in support of an application for order to sell company’s property subject to a security12.3 Order permitting the administrator to sell company’s property subject to a security13 Application by a Creditor or Member Alleging Unfair Harm by an Administrator ObjectiveApplicationCourt feesEvidenceServiceThe first hearingOrderKey statutory provisionsParagraph 74 of Schedule B1 to the Insolvency Act 1986Rules 1.6 and 1.35 of the Insolvency (England and Wales) Rules 2016Precedents13.1 Application by a creditor complaining that the administrator has unfairly harmed him13.2 Witness statement in support of an application by a creditor complaining that the administrator has unfairly harmed him13.3 Order on an application by a creditor complaining that the administrator has unfairly harmed him14 Application by an Administrator to End the Administration ObjectiveApplicationProgress reportCourt feesEvidenceNotice to the creditorsNotice to the courtServiceThe first hearingKey statutory provisionsParagraph 79 of Schedule B1 to the Insolvency Act 1986Rules 1.6, 1.35, 3.57, 3.59, 7.26 and 7.27 of the Insolvency (England and Wales) Rules 2016Precedents14.1 Application by the administrator to discharge the administration order14.2 Witness statement in support of an application by the administrator to discharge the administration order14.3 Order discharging the administration order15 Application by a Secured Creditor to Enforce his Security/Bring Proceedings during an Administration ObjectiveApplicationCourt feesEvidenceServiceKey statutory provisionsParagraph 43 of Schedule B1 to the Insolvency Act 1986Rules 1.6 and 1.35 of the Insolvency (England and Wales) Rules 2016Precedents15.1 Application for leave to enforce despite the moratorium under an administration15.2 Witness statement in support of an application for leave to enforce despite the moratorium under the administration15.3 Order granting leave to enforce despite the moratorium under an administration16 Application for Leave to Enforce Security or Seek Possession despite a Moratorium on a Partnership Voluntary Arrangement ObjectiveApplicationCourt feesEvidenceServiceKey statutory provisionsParagraphs 12 and 20 of Schedule A1 to the Insolvency Act 1986Rules 1.6, 1.35 and 2.20 of the Insolvency (England and Wales) Rules 2016Precedents16.1 Application for leave to enforce despite the moratorium under the partnership voluntary arrangement16.2 Witness statement in support of an application for leave to enforce despite the moratorium under the partnership voluntary arrangement16.3 Order granting leave to enforce despite the moratorium under the partnership voluntary arrangement17 Application to Appeal Decisions Made by the Chairman on a Meeting for a Company Voluntary Arrangement ObjectiveApplicationCourt feesServiceEvidenceKey statutory provisionsRules 1.6, 1.35 and 15.33 to 15.35 of the Insolvency (England and Wales) Rules 2016Precedents17.1 Application to appeal against a decision by the chairman on a meeting for a company voluntary arrangement17.2 Witness statement in support of an appeal against a decision by the chairman on a meeting for a company voluntary arrangement17.3 Order on an application to appeal against a decision by the chairman on a meeting for a company voluntary arrangement18 Application to Challenge an Act or Decision of the Supervisor in a Company Voluntary Arrangement Background ApplicationCourt feesEvidenceServiceThe respondent’s evidenceKey statutory provisionsSection 7 of the Insolvency Act 1986Rules 1.6 and 1.35 of the Insolvency (England and Wales) Rules 2016Precedents18.1 Application to challenge a decision by a supervisor of a company voluntary arrangement18.2 Witness statement in support of an application to challenge a decision by a supervisor of a company voluntary arrangement18.3 Order on an application to challenge a decision by a supervisor of a company voluntary arrangement19 Application by an Administrative Receiver for an Indemnity by Reason of the Invalidity of his Appointment ObjectiveApplicationCourt feesEvidenceServiceKey statutory provisionsSection 34 of the Insolvency Act 1986Rules 1.6 and 1.35 of the Insolvency (England and Wales) Rules 2016Precedents19.1 Application by a receiver for an order that his appointer indemnify him against liability by reason of the invalidity of his appointment19.2 Witness statement in support of an application by an administrative receiver for an order that his appointer indemnify him againstliability by reason of the invalidity of his appointment19.3 Order that his appointer indemnify him against liability by reason of the invalidity of his appointment20 Application to Remove an Administrative Receiver from Office ObjectiveApplicationCourt feesEvidenceServiceNoticeKey statutory provisionsSection 45 of the Insolvency Act 1986Rules 1.6, 1.35 and 4.18 to 4.21 of the Insolvency (England and Wales) Rules 2016Precedents20.1 Application to remove an administrative receiver from office20.2 Witness statement in support of an application to remove an administrative receiver from office20.3 Order to remove an administrative receiver from office21 Application for a Declaration that a Transaction is Invalidated by Virtue of Section 127 of the Insolvency Act 1986 ObjectiveApplicationCourt feesServiceEvidenceThe first hearingKey statutory provisionsSections 127 to 129 of the Insolvency Act 1986Precedents21.1 Application for a declaration of invalidity of a transfer pursuant to section 127 of the Insolvency Act 198621.2 Witness statement in support of an application for a declaration of invalidity of a transfer pursuant to section 127 of the Insolvency Act 198621.3 Declaration of invalidity under section 127 of the Insolvency Act 198622 Application to Set Aside a Transfer at an Undervalue ObjectiveApplicationCourt feesEvidenceServiceThe first hearingKey statutory provisionsSections 238, 240, 241 and 435 of the Insolvency Act 1986Rules 1.6 and 1.35 of the Insolvency (England and Wales) Rules 2016Precedents22.1 Application for a declaration that a payment is a transaction at an undervalue pursuant to section 238 of the Insolvency Act 198622.2 Witness statement to set aside a transaction at an undervalue pursuant to section 238 of the Insolvency Act 198622.3 Declaration that a payment is a transaction at an undervalue pursuant to section 238 of the Insolvency Act 198623 Application to Set Aside a Preference ObjectiveApplicationCourt feesEvidenceServiceThe first hearingKey statutory provisionsSections 239, 240, 241 and 435 of the Insolvency Act 1986Rules 1.6 and 1.35 of the Insolvency (England and Wales) Rules 2016Precedents23.1 Application for a declaration that a payment is a preference pursuant to section 239 of the Insolvency Act 198623.2 Witness statement to set aside a preference pursuant to section 239 of the Insolvency Act 198623.3 Declaration of a preference pursuant to section 239 of the Insolvency Act 198624 Application for a Declaration that the Director has been Engaged in Fraudulent Trading ObjectiveApplicationCourt feesServiceThe first hearingEvidenceKey statutory provisionsSections 213, 215, 246ZA and 246ZC of the Insolvency Act 1986Rules 1.6 and 1.35 of the Insolvency (England and Wales) Rules 2016Precedents24.1 Application for a declaration that a director has been engaged in fraudulent trading pursuant to section 216 of the Insolvency Act 198624.2 Witness statement for a declaration of fraudulent trading pursuant to section 213 of the Insolvency Act 198624.3 Declaration that a director has been engaged in fraudulent trading pursuant to section 213 of the Insolvency Act 198625 Application for a Declaration that the Director has been Engaged in Wrongful Trading ObjectiveApplicationCourt feesServiceThe first hearingEvidenceKey statutory provisionsSections 214, 215, 246ZB and 246ZC of the Insolvency Act 1986Rules 1.6 and 1.35 of the Insolvency (England and Wales) Rules 2016Precedents25.1 Application for a declaration that a director has been engaged in wrongful trading pursuant to section 214 of the Insolvency Act 198625.2 Witness statement for a declaration of wrongful trading pursuant to section 214 of the Insolvency Act 198625.3 Declaration that a director has been engaged in wrongful trading pursuant to section 214 of the Insolvency Act 198626 Application to Set Aside a Transaction Defrauding Creditors ObjectiveClaimCourt feesEvidenceThe first hearingServiceKey statutory provisionsSections 423 to 425 of the Insolvency Act 1986Rules 1.6 and 1.35 of the Insolvency (England and Wales) Rules 2016Precedents26.1 Claim for a declaration that a payment is a transaction defrauding creditors pursuant to section 423 of the Insolvency Act 198626.2 Particular of claim in support of a claim to set aside a fraudulent transaction pursuant to section 423 of the Insolvency Act 198626.3 Witness statement to set aside a fraudulent transaction pursuant to section 423 of the Insolvency Act 198626.4 Declaration that a payment is a transaction defrauding creditors pursuant to section 423 of the Insolvency Act 198627 Application under the Summary Procedure ObjectiveApplicationCourt feesServiceThe first hearingEvidenceKey statutory provisionsSection 212 of the Insolvency Act 1986Rules 1.6 and 1.35 of the Insolvency (England and Wales) Rules 2016Precedents27.1 Application for a declaration that there has been a breach of duty using the summary remedy under section 212 of the Insolvency Act 198627.2 Witness statement in support of an application for a declaration that there has been a breach of duty using the summary remedy under section 212 of the Insolvency Act 198627.3 Declaration that there has been a breach of duty using the summary remedy under section 212 of the Insolvency Act 198628 Private Examinations ObjectiveApplicationCourt feesServiceWitness statement/groundsFirst hearingReturn dateWarrant for arrestKey statutory provisionsSections 235 to 237 of the Insolvency Act 1986Rules 1.6, 1.35 and 12.17 to 12.20 of the Insolvency (England and Wales) Rules 2016Precedents28.1 Letter requesting documentS before an application is made fo a private examination28.2 Application for a private examination28.3 Witness statement in support of an application for a private examination28.4 Order for private examination28.5 Warrant for the arrest of the examinee on his failure to attend a private examination29 Appeal from an Order of an Insolvency and Companies Court Judge ObjectiveAppeal noticeCourt feesServiceRespondent’s noticeAppeal bundleTime limitsKey statutory provisionsRules 12.58, 12.59 and 12.61 of, and Schedule 10 to, the Insolvency (England and Wales) Rules 2016Paragraphs 17.1 to 19.3 of Part Four of the CPR Practice Direction – Insolvency Proceedings30 Toolkit Issuing proceedings in the Royal Courts of JusticeCourts electronic filing – CE-FileCounty court or High Court?Insolvency and Companies Court Judge or Judge?Urgent applicationsEvidenceBundlesTime estimatesSkeleton argumentsUseful email addressesCourt dressCourt feesKey statutory provisionsSchedule 4 to the Insolvency (England and Wales) Rules 2016, ExtractsCPR Practice Direction – Insolvency Proceedings, ExtractsPrecedents30.1   Form IAA application30.2   Certificate of urgency30.3   Creditor’s statutory demand30.4   Winding-up petition30.5   Notice of persons intending to appear30.6   Petition by contributory30.7   Petition by office holder30.8   List of appearances30.9   Certificate of compliance30.10 Verification of the Petition30.11 Administration application Index