KEEPING up to date with change in a fast-paced business environment is always difficult. You may feel that you have been subjected to information overload recently, with the upcoming General Election and the on-going Brexit saga.
It is, therefore, understandable that you may have missed the new insolvency legislation that came into force on the 6 April 2017. You might say so what, but this could affect you if you have a supplier or debtor that becomes insolvent in the future.
In brief, the rules attempt to bring insolvency into the 21st Century and recognise the growth of electronic communication. It is impossible to cover all of the changes in this short article so I have concentrated on three new ideas that have been introduced to give you a flavour of what to expect.
Deemed Consent is a new procedure, where unless an insolvency practitioner’s proposals are met with objections from 10 per cent of creditors in value, the proposal is deemed to be approved.
Virtual meetings are set to replace physical meetings. A physical meeting can still happen but it must be requested by creditors. Virtual meetings could take place by phone conference or via an IP website using video conferencing technology.
Electronic Voting is a decision making procedure where creditors may vote without the need to attend a physical location. It could be undertaken by email or using technology such as Survey Monkey.
In summary, if you wish to be kept informed of what is happening to a debtor or supplier that is insolvent do not ignore that initial email or you could find the company is wound up without you having your say.
If you would like more information contact the Commercial Litigation Team for a no obligation discussion on 0800 088 6004.
