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View the related checklists about Validation order

Application for a validation order for a company—checklist

Application for a validation order for a company—checklist Obtain necessary information to draft statement in support of application for validation order: • a company search • a copy of the winding-up petition • details of the debt and, if disputed, details of dispute • up to date accounts and forecasts, including bank account statements • details of the intended dispositions (including continued trading if relevant)/transfers (including supporting documentation) • if the asset is a property, identification of the property including title numbers • valuation evidence if an asset is to be disposed of See Practice Note: Validation orders—dispositions of property after commencement of winding up. Draft: • witness statement in support from a director or officer of the company who is intimately acquainted with the company's affairs and financial circumstances. If appropriate, supporting evidence from the company's accountant should also be produced. The evidence should, as a minimum, contain the information set out in the Practice Direction on Insolvency Proceedings (PDIP), para 9.11.4, namely: ◦ when and to whom notice...

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Validation orders—dispositions of property after commencement of winding up

This Practice Note gives guidance as to when it is necessary to apply for a validation order and the procedures to be followed.Why might an application for a validation order need to be made?Under section 127 of the Insolvency Act 1986 (IA 1986), any dispositions of property made by a company after the commencement of a winding up are void.Examples of dispositions are:•payments out of a bank account; a bank will frequently freeze a bank account when it becomes aware of a winding-up petition, making it impossible to trade•payment of wages, salaries and other day-to-day expenditure by a company•sale of a company asset, such as a land transactionIt should be noted that it is irrelevant whether the disposition is for full market value or otherwise: it is still potentially subject to IA 1986, s 127.Although IA 1986, s 127 prevents valid dispositions of the company’s property after the commencement of the winding up, this does not apply to dispositions by a receiver of property contained within the relevant charge. This...

Application for a validation order for a company—checklist

Obtain necessary information to draft statement in support of application for validation order:•a company search•a copy of the winding-up petition•details of the debt and, if disputed, details of dispute•up to date accounts and forecasts, including bank account statements•details of the intended dispositions (including continued trading if relevant)/transfers (including supporting documentation)•if the asset is a property, identification of the property including title numbers•valuation evidence if an asset is to be disposed ofSee Practice Note: Validation orders—dispositions of property after commencement of winding up.Draft:•witness statement in support from a director or officer of the company who is intimately acquainted with the company's affairs and financial circumstances. If appropriate, supporting evidence from the company's accountant should also be produced. The evidence should, as a minimum, contain the information set out in the Practice Direction on Insolvency Proceedings (PDIP), para 9.11.4, namely:◦when and to whom notice has been given in accordance with PDIP, para 9.11.2◦the company’s registered office◦the company’s capital◦brief details of the circumstances leading to presentation of the petition◦how the company became aware...

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Application notice in connection with an application for a validation order pursuant to section 127 of the Insolvency Act 1986

Application notice in connection with an application for a validation order pursuant to section 127 of the Insolvency Act 1986 Note: This Precedent should be used in conjunction with an application notice template that complies with the Insolvency (England and Wales) Rules 2016, SI 2016/1024—see: • (Form IAA) IR 2016, r1.35 VAR Insolvency Act Application Notice • Application notice in insolvency proceedings (corporate) In the matter of the insolvency act 1986 Application Notice Name of company Company number [Insert company number] [Insert name of court] For court use only Court case number: Between Applicant [Name of Applicant (usually the company] and Respondent Petitioning Creditor Is this application in insolvency proceedings which are already before the court? [Yes OR no][.......................] If Yes, please provide— Court reference number for the pending proceedings to which this application relates [Insert petition reference number] I (We) [Insert name and address of applicant] Intend to apply to the Judge/the Insolvency and Companies Court Judge/District Judge on:– Date Time hours Place...

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Can a sum, which is sought to be recovered by a liquidator under section 127 of the Insolvency Act 1986, include interest?

Can a sum, which is sought to be recovered by a liquidator under section 127 of the Insolvency Act 1986, include interest? Property dispositions in compulsory liquidations Section 127 of the Insolvency Act 1986 (IA 1986) provides that, in a winding up by the court (ie compulsory liquidation), any disposition of the company's property made after the commencement of the winding up is void, unless the court orders otherwise by granting a validation order. Under IA 1986, s 129, a winding up by the court commences on the date on which the winding-up petition is presented at court, albeit that IA 1986, s 127 only takes effect if a winding-up order is made on that petition. However, an application for a validation order can be made prior to the making of the winding-up order (and would usually be recommended to be made at that time, and prior to the disposition occurring). According to the commentary from Bailey & Groves, available on Lexis®Library on Avoidance of dispositions after commencement...

What are the grounds for a successful validation order in order to pay creditors for work completed or goods supplied? Does it make a difference if the payments made are valid and duly owed?

What are the grounds for a successful validation order in order to pay creditors for work completed or goods supplied? Does it make a difference if the payments made are valid and duly owed? Under section 127 of the Insolvency Act 1986, any dispositions of property made by a company after the commencement of a winding-up are void. A winding-up of a company by the court commences upon the presentation of the petition. It is therefore necessary to apply to the court for a validation order if a petition is presented. If a company wishes to continue to trade or dispose of an asset after the presentation of a petition, it is necessary to apply for a prospective validation order because if an order is made on the hearing of the petition, any dispositions between the making of the presentation of the petition and the making of the order is invalid. For more information, see Practice Note: Validation orders—dispositions of property after commencement of winding up. Before...

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Unenforceable financial services transactions: validation orders and compensation claims (Barclays Partner Finance Applicants v FCA)

Financial Services analysis: This was an unusual case in which the Upper Tribunal (UT) (1) gave applicants challenging a validation order granted by the Financial Conduct Authority (FCA) to Barclays Partner Finance (BPF), permission to withdraw their references and (2) struck out as having no reasonable prospect of success, the references of any applicants who had not sought to withdraw, in both cases because following the FCA’s validation order, BPF had adopted a remediation process which gave the applicants everything they could have obtained as a result of their references. A part of the UT’s reasoning for that conclusion was that it did not have jurisdiction under those references to deal with issues relating to the compensation claims made by some applicants. The discussion of the relationship between validation and compensation claims may encourage those with potential compensation claims to pursue them more vigorously at an earlier stage and prompts reflection on how the procedure adopted might be improved. Written by Elizabeth Ovey, barrister at Radcliffe Chambers.

Regulatory requirements for Green Deal providers

Environment analysis: Who can provide Green Deal plans and what licences are needed? Bill Hull, head of the Green Deal team at TLT Solicitors, comments on the issues.