scores_test_insolvency_bot_with_gpt-4.csv

question_no	question_text	bot_response	bot_response_time	bot_response_attempts	bot_statutes	bot_cases	bot_forms	mark_scheme	bot_score	bot_score_breakdown	max_points_available	bot_mark_scheme_assessments
Q1	I set up a limited liability company in 2015. My business suffered greatly during the Covid-19 pandemic, and it still hasn’t recovered yet. I fell into arrears, and one of my suppliers submitted a winding-up petition against my business. A friend of mine is willing to invest money in my company. Do I have good chances of avoiding a liquidation order if my friend commits to pumping money into my business?	The presentation of a promise of investment into your business might be influential, but it's not guaranteed to be sufficient in avoiding a winding-up order. Based on the case law of Re A Company [2022] EWHC 943 (Ch), the court will also need evidence to show that the financial hardships your company is experiencing are due to the impact of COVID-19, and not other inherent business problems. The inability to pay debts must be shown to be temporary due to the effects of the pandemic, and not a result of an already failing business model. The court will also look at the principles established in the Cheyne Finance plc (No 2), Re [2007] EWHC 2402 (Ch), particularly concerning the cash-flow and balance-sheet tests to determine insolvency. This means you must show that your business is capable of paying its debts as they fall due, now and in the future. As this pertains to your situation, presenting a convincing plan for clearing the company's arrears with the prospective investment may prove helpful. However, as demonstrated in the case law of Byblos Bank SAL v Al-Khudhairy (1986) 2 B.C.C. 99 (CA), mere expectations of incoming funding are not usually considered sufficient. The court will need to see evidence of a definite financial commitment from your friend, and perhaps how this commitment will be used in the regular running of the business in addition to paying off the company's debts. Moreover, should you have Director's liability concerns as indicated under the Insolvency Act 1986 section 208 and the Company Directors Disqualification Act 1986, you might want to consider seeking the court's permission for a moratorium (a temporary suspension of action) under section A4 of the Insolvency Act 1986. This could provide your business with more time to secure the proposed investment and possibly create a restructuring plan. It is crucial to consult with a legal advisor or a licensed insolvency practitioner to discuss these issues in more detail and to ensure you understand your obligations under the relevant statutory provisions. They can also guide you on the next steps and potentially negotiate with your creditors, including through any forms that may be necessary, such as Companies House forms MT03 or LIQ03. Remember, this advice is general in nature, and the application will depend on the specific facts of your situation.	79.3068459033966	1	Insolvency Act 1986 section 208 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section A4 (Moratorium)|Insolvency Act 1986 section 124 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 123 (Winding Up of Companies Registered under the Companies Acts)	"Re A Company [2022] EWHC 943 (Ch) (Coronavirus; Winding-up petition)|Cheyne Finance plc (No 2), Re [2007] EWHC 2402 (Ch) (Notion of Insolvency; Cash flowS; Balance sheets; Debt; Receivership; Standard of proof)|Petitioner v Company [2022] 6 WLUK 131 (Coronavirus; Demands; Inability to pay debts; Loan agreements; Winding-up petitions
)|Casa Estates (UK) Ltd (in liq.), Re [2014] EWCA Civ 383 (Notion of Insolvency; Balance sheets; Cash flows; Transactions at an undervalue)|Byblos Bank SAL v Al-Khudhairy (1986) 2 B.C.C. 99 (CA) (Notion of Insolvency; Winding-up orders)|BTI 2014 LLC v Sequana SA [2016] EWHC 1686 (Ch) (Directors' powers and duties; Breach of fiduciary duty; Good faith; Fiduciary duty)|BNY Corporate Trustee Service ltd v Eurosail [2013] UKSC 28 (Notion of Insolvency; Crystallisation; Liabilities; Security)"	Companies House Form LIQ03: Use this form to give notice of progress report in voluntary winding up.|Companies House Form MT03: Tell Companies House that a moratorium has ended early.|Companies House Form WU07: Use this form to give notice of a progress report in a winding-up by the court.	"[["" Does the lawyer identify the different forms of liquidation, and the circumstances in which a company can be liquidated? "", "" Does the lawyer refer to the relevant statutes (ss. 123-124 IA 1986) to determine if a company is insolvent?"", "" Does the law discuss the differences between cash-flow and balance-sheet insolvency?"", "" Does the lawyer refer to s. 122 IA 1986? "", "" Does the lawyer identify the powers the courts have when hearing an insolvency petition? "", "" Does the lawyer refer to ss.125-128 IA 1986?"", "" Does the lawyer clarify that Hopes and expectations of future funding without any rights to those assets are irrelevant (Byblos)?"", "" Does the lawyer refer to any relevant case law? "", "" Does the lawyer provide the correct advice?""], [3, 3, 3, 2, 3, 2, 3, 3, 3]]"	15.5	[0, 1.5, 3, 1.0, 0, 1.0, 3, 3, 3]	25	No|No|Yes|No|No|No|Yes|Yes|Yes|
Q2	My business has been running at a deficit for a few years. In 2021, I got a loan from NatWest to stay afloat. I have given my share in the family home (50%) as a collateral for this loan. I am now unable to repay it. What should I do? Can the bank repossess my house?	I'm sorry to hear about your situation. It's important to consider a number of factors in this situation. 1. Assess Your Situation: It would be beneficial for you to closely reassess your business financials and projections. Are there steps you can take to improve the situation, such as cost-cutting, increasing sales, or restructuring debts? 2. Communicate with Your Lender: Reach out to NatWest to discuss your difficulties. They may offer some form of payment plan, or potentially even a temporary pause on repayment (also called a payment holiday). 3. Legal implications: With regards to your home, if it was used as collateral for the loan, it is possible that NatWest has rights over it if you default on the loan. The specific rights they have depend on the type of loan and the specific terms of your agreement. 4. Consider Business Rescue Procedures: There are various formal insolvency procedures which could help your company, like Administration, a Company Voluntary Arrangement, or a new Restructuring Plan under section 26A of the Companies Act 2006 (added by the Corporate Insolvency and Governance Act 2020). In terms of your personal liability, as a director, you have various duties to your company. If these are breached, it could lead to personal liability for company debts. For example, if you continue trading while your company is insolvent, and this causes a loss to creditors, you may be personally liable for wrongful trading (Insolvency Act 1986 s.214), although this has been temporarily suspended until 30th April 2021 due to the pandemic. 5. Seek Professional Advice: It would be wise to consult with a solicitor or an insolvency practitioner to understand your options and legal position more thoroughly. They may offer strategies you may not have considered or reassure you about your position. Remember that this is just general advice. I strongly recommend you seek professional advice to understand the potential implications of your situation.	44.03764653205872	1	Companies Act 2006 section 899A (Arrangements and reconstructions: general])|Insolvency Act 1986 section 124 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 123 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 332 (Bankruptcy)|Insolvency Act 1986 section 329 (Bankruptcy)	"McTear v Eade [2019] EWHC 1673 (Ch) (Breach of fiduciary duty; Directors' duties and powers; Limited liability partnerships; Liquidation; Misfeasance)|Rowntree Ventures Ltd v Oak Property Partners Ltd [2016] EWHC 1523 (Ch) (Rescue Procedures; Notion of insolvency; Cash-flows; Balance-sheets; Inability to pay debts)|Petitioner v Company [2022] 6 WLUK 131 (Coronavirus; Demands; Inability to pay debts; Loan agreements; Winding-up petitions
)|Lo-Line Electric Motors Ltd, Re [1988] Ch. 477 (Investigating and Suppressing Misconduct; Directors; Disqualification; Misconduct)|Pathania v Tashie-Lewis [2021] EWHC 526 (Ch) (Investigating and suppressing misconduct; Directors' duties and powers; Transactions at an undervalue)|Official Receiver v Arron [2021] EWHC 1587 (Ch) (Investigating and suppressing misconduct; Directors disqualification; Directors' powers and duties;)|BTI 2014 LLC v Sequana SA [2022] UKSC 25 (Directors' powers and duties; Breach of fiduciary duty; Good faith; Fiduciary duty)|BTI 2014 LLC v Sequana SA [2016] EWHC 1686 (Ch) (Directors' powers and duties; Breach of fiduciary duty; Good faith; Fiduciary duty)|Johnson v Beighton [2019] EWHC 895 (Ch) (Investigating and suppressing misconduct; Directors' powers and duties; Contingent liabilities; Directors' liabilities; Knowledge; Liquidation; Wrongful trading)|Singer v Beckett [2001] BPIR 733 (Damages; Directors; Directors' liabilities; Directors' powers and duties; Liquidation; Wrongful trading; iNVESTIGATING AND SUPPRESSING MISCONDUCT)|Morris v Bank of India [2004] EWHC 528 (Ch) (Investigating and Suppressing Misconduct; Directors' duties and powers; Vicarious liability; Parent company; Tortious liability)"	Companies House Form DS02: Use this form to withdraw your company's striking off application.|Companies House Form SH01: Use this form to give notice of shares allotted following incorporation. Include the optional continuation pages if needed.|Companies House Form MT03: Tell Companies House that a moratorium has ended early.	"[["" Does the lawyer outline the rules on the distribution of assets in insolvency (s.107 IA 1986 and following)?"", "" Does the lawyer outlines that secured creditors do not share pari passu, but they are paid in priority on the proceeds generated by the sale of secured assets?"", "" Does the lawyer outline the difference between fixed and floating charges?"", "" Does the lawyer clarify that the bank is likely to have a fixed charge over the debtor\u2019s family home?"", "" Does the lawyer clarify that the debtor cannot transfer his equity to their partner to prevent repossession from the bank?"", "" Does the lawyer mention that the security may not be enforceable should the lender not have complied with the rules regulating either their activity as lender or the registration of charges?"", "" Does the lawyer refer to any relevant case law?"", "" Does the lawyer provide the correct advice?""], [3, 3, 3, 3, 3, 3, 3, 3]]"	4.5	[1.5, 0, 0, 0, 0, 0, 0, 3]	24	No|No|No|No|No|No|No|Yes|
Q3	My business (a small restaurant in Egham) is saddled with debt towards several suppliers. I do have a loyal customer base, but I feel that I need to reduce my debt burden. My brother offered to buy my business for a fair price, and he also told me he would like to retain me and some of my employees. However, he says that I need to deal with my debt before selling the business to him. I don’t have savings. What can I do?	Based on the information you’ve provided, there are several options available for dealing with your company's debt prior to the sale. These options involve different procedures under the Insolvency Act 1986 and associated legislation and regulations, and depending on the amount of debt and the potential effect on your company's overall financial situation, each will have different implications for your role as director. 1. **Company Voluntary Arrangement (CVA)**: This is a formal arrangement made with your company's creditors to allow a proportion of debts to be paid back over time. It is often used as an opportunity for a company to continue trading while in debt, and as such may allow your brother to purchase the business once the deed of arrangement is in place and potential future earnings can be established (Re Cheyne Finance plc (No 2) [2007] EWHC 2402 (Ch)). This arrangement would require the approval of your creditors. 2. **Administration**: This involves appointing an administrator to manage your company's affairs with the aim of rescuing the company as a going concern, or achieving a better result for the company's creditors as a whole than if the company were wound up. Administration would impose a moratorium on legal proceedings and prevent creditors from enforcing their debts, which may allow time to negotiate a sale to your brother (Insolvency Act 1986 section A16). 3. **Liquidation**: This is the closure of a company with assets being sold to pay creditors. However, the potential for you and your employees to retain roles within the business may be limited depending on the terms of the sale and the disposition of any remaining assets (Insolvency Act 1986 section 149). If you deal with your debts through any of these methods, it's crucial to avoid breaching your directors' duties. You must act in the best interests of your creditors (BTI 2014 LLC v Sequana SA [2016] EWHC 1686 (Ch)). Be mindful that under the Company Directors Disqualification Act 1986, you could face disqualification as a director if you don't fulfil these duties. In all cases, I would recommend you seek advice from an insolvency practitioner, who can provide detailed advice on the best route for your specific circumstances. For instance, they would be able to help you fill in the necessary forms to Companies House. For example, if your company is going into liquidation, you would use 'Form LIQ02: Give notice of a statement of affairs'. Remember, this advice is based on general principles of English insolvency law and every case is different. Please consider seeking professional advice tailored to the specifics of your situation.	59.60545349121094	1	Companies Act 2006 section 154 (A company's directors)|Insolvency Act 1986 section A16 (Moratorium)|Insolvency Act 1986 section 124 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 123 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 149 (Winding Up of Companies Registered under the Companies Acts)	"Belmont Park Investments Pty Ltd v BNY Corporate Trustee Services [2011] UKSC 38 (Anti-deprivation principle; Good faith; Priorities; Order of distribution; Security)|Cheyne Finance plc (No 2), Re [2007] EWHC 2402 (Ch) (Notion of Insolvency; Cash flowS; Balance sheets; Debt; Receivership; Standard of proof)|Petitioner v Company [2022] 6 WLUK 131 (Coronavirus; Demands; Inability to pay debts; Loan agreements; Winding-up petitions
)|Casa Estates (UK) Ltd (in liq.), Re [2014] EWCA Civ 383 (Notion of Insolvency; Balance sheets; Cash flows; Transactions at an undervalue)|Byblos Bank SAL v Al-Khudhairy (1986) 2 B.C.C. 99 (CA) (Notion of Insolvency; Winding-up orders)|BTI 2014 LLC v Sequana SA [2016] EWHC 1686 (Ch) (Directors' powers and duties; Breach of fiduciary duty; Good faith; Fiduciary duty)|BNY Corporate Trustee Service ltd v Eurosail [2013] UKSC 28 (Notion of Insolvency; Crystallisation; Liabilities; Security)"	Companies House Form LIQ02: Use this form to give notice of a statement of affairs.|Companies House Form MR03: Use this form to register a charge to secure a series of debentures created or evidenced by an instrument on or after 6 April 2013.|Companies House Form RT01: Use this form to apply to Companies House to get your company restored.	"[["" Does the lawyer provide an outline of the different rescue options available under the Insolvency Act 1986?"", "" Does the lawyer provide an outline of the different restructuring options available under the Companies Act 2006?"", "" Does the lawyer outline the pros and cons of each of these options, and provide advice on the most suitable solution?"", "" Does the lawyer suggest the use of a pre-packaged administration procedure?"", "" Does the lawyer refer to the changes introduced by the Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021"", "" Does the lawyer refer to any relevant case law?"", "" Does the lawyer provide the correct advice?""], [4, 4, 4, 4, 3, 3, 3]]"	10.0	[4, 0, 0, 0, 0, 3, 3]	25	Yes|No|No|No|No|Yes|Yes|
Q4	I own a pub in Windsor. I have been badly hit by the rise in interest rates on my loans, by additional taxes on alcohol as well as by a reduction in my customer base. I fell in arrears in the payments towards the HMRC, as well as some of my suppliers (but I had to pay in full some of them, as otherwise I would have had to close my business). I reached an agreement with my bank and with most of my suppliers to delay the repayment of my debt. The HMRC won’t listen and they are threatening legal actions against me. What can I do? HMRC counts for roughly 50% of my unsecured debt (the debt towards the bank is secured by a collateral on my pub).	Firstly, it's important to understand that businesses often go through periods of financial difficulty and tools are available to help them navigate these problematic times. Given that you have secured agreements to delay the repayment of the majority of your unsecured debts, you have already taken a crucial step in managing your debt. Considering HMRC constitutes roughly 50% of your unsecured debt and is unwilling to agree to a similar arrangement, it might be useful to look into the options provided by Insolvency law to companies facing your situation. For example, a Company Voluntary Arrangement (CVA) may provide a possible solution. A CVA is a formal agreement made between a company and its creditors allowing a proportion of its debts to be paid back over time. In this case, you could propose a CVA to your creditors (including HMRC), setting out how you plan to repay your company's debts over a period of time. Your creditors will vote on this proposal. If 75% (by debt value) of the creditors who vote, agree to your proposal, then all creditors will be bound by the CVA. This means even HMRC would have to comply with the delay in repayment, if the majority of your creditors agree to it. It's also important to understand that as a director of the company, you have a legal responsibility to act in the best interest of your creditors as soon as you realise the company is insolvent (or very likely to become insolvent). Failure to fulfil these duties can result in being disqualified from acting as the director of a company for up to 15 years (Company Directors Disqualification Act 1986). However, seek immediate legal and financial advice to explore all possible options. Engage an insolvency practitioner and assess the viability of the CVA or any other insolvency procedures, like administration or liquidation. Please note that this is just an overview and cannot be considered as legal advice for your specific circumstances. Always consult with a solicitor before making any decisions.	43.084139347076416	1	Insolvency Act 1986 section A28 (Moratorium)|Companies Act 2006 section 899A (Arrangements and reconstructions: general])|Insolvency Act 1986 section 124 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 123 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 251G (Debt relief orders)	"Belmont Park Investments Pty Ltd v BNY Corporate Trustee Services [2011] UKSC 38 (Anti-deprivation principle; Good faith; Priorities; Order of distribution; Security)|Cheyne Finance plc (No 2), Re [2007] EWHC 2402 (Ch) (Notion of Insolvency; Cash flowS; Balance sheets; Debt; Receivership; Standard of proof)|Petitioner v Company [2022] 6 WLUK 131 (Coronavirus; Demands; Inability to pay debts; Loan agreements; Winding-up petitions
)|Casa Estates (UK) Ltd (in liq.), Re [2014] EWCA Civ 383 (Notion of Insolvency; Balance sheets; Cash flows; Transactions at an undervalue)|Byblos Bank SAL v Al-Khudhairy (1986) 2 B.C.C. 99 (CA) (Notion of Insolvency; Winding-up orders)|BTI 2014 LLC v Sequana SA [2016] EWHC 1686 (Ch) (Directors' powers and duties; Breach of fiduciary duty; Good faith; Fiduciary duty)|BNY Corporate Trustee Service ltd v Eurosail [2013] UKSC 28 (Notion of Insolvency; Crystallisation; Liabilities; Security)"	Companies House Form RT01: Use this form to apply to Companies House to get your company restored.|Companies House Form MT02: Tell Companies House about an extension to a moratorium for a company.|Companies House Form MT03: Tell Companies House that a moratorium has ended early.	"[["" Does the lawyer provide an outline of the different rescue options available under the Insolvency Act 1986?"", "" Does the lawyer provide an outline of the different restructuring options available under the Companies Act 2006?"", "" Does the lawyer outline the pros and cons of each of these options, and provide advice on the most suitable solution?"", "" Does the lawyer suggest the use of Part 26A restructuring plans?"", "" Does the lawyer speak of the ability of cramming down dissenting creditors in a Part 26A plan, and the conditions for doing it?"", "" Does the lawyer refer to any relevant case law?"", "" Does the lawyer provide the correct advice?""], [4, 4, 4, 4, 3, 3, 3]]"	5.0	[2.0, 0, 0, 0, 0, 0, 3]	25	No|No|No|No|No|No|Yes|
Q5	I have been badly hit by the rise in interest rates on my loans, as well as by a reduction in my customer base (I run a pub in Ascot). I fell in arrears in the payments towards the HMRC, as well as some of my suppliers (but I had to pay in full some of them, as otherwise I would have had to close my business). My landlord is demanding an extortionate amount of money for my rent. While I agreed to a new, 5-year leasing agreement, I realised that I am operating at a loss unless my rent is reduced and the HMRC agrees to a repayment plan. What can I do?	I'm sorry to hear about the difficulties you're facing. From a legal point of view, there are several options you might consider. Firstly, you have the ability to negotiate with your landlord and creditors. Under the Belmont Park Investment case law, the courts have shown a willingness to uphold commercial agreements entered in good faith. Therefore, if you can negotiate a reduction in rent with your landlord, or a repayment plan with HMRC, these agreements could help you manage your debts. Secondly, if the financial pressures become too much, you might consider insolvency procedures. For example, a Company Voluntary Arrangement (CVA) would allow you to pay creditors over a fixed period. If creditors agree, your company could continue trading. You may also consider an administration, which would allow an administrator to take control of the company with the aim of paying off debts. You should note that Insolvency Act 1986 section 222 and section 224 deal with the winding up of companies and conditions for insolvency. If you find yourself in a position where you are trading whilst insolvent and are unable to pay your creditors, be aware of the obligations and potential pitfalls for directors under the Companies Act 2006 section 251. Directors who continue trading when the company is insolvent can be held personally responsible for company debts. You should keep the solvency of your company under constant review, and should seek professional advice if insolvency looks likely. The Companies House forms (LIQ03, RT01, MT03) may be relevant depending on your circumstances. Ultimately, it's important to get professional advice tailored to your specific circumstances. You should consider speaking to a solicitor or insolvency practitioner. Please note this information is intended as general guidance only and does not constitute legal advice.	59.058146476745605	1	Insolvency Act 1986 section 222 (Winding Up of Unregistered Companies)|Companies Act 2006 section 251 (A company's directors)|Insolvency Act 1986 section 224 (Winding Up of Unregistered Companies)	Belmont Park Investments Pty Ltd v BNY Corporate Trustee Services [2011] UKSC 38 (Anti-deprivation principle; Good faith; Priorities; Order of distribution; Security)|BTI 2014 LLC v Sequana SA [2016] EWHC 1686 (Ch) (Directors' powers and duties; Breach of fiduciary duty; Good faith; Fiduciary duty)|Oceanfill Ltd v Nuffield Health Wellbeing Ltd [2022] EWHC 2178 (Ch) (Business restructuring; Debt restructuring; Guarantors; Schemes of arrangement; Summary judgments)	Companies House Form LIQ03: Use this form to give notice of progress report in voluntary winding up.|Companies House Form RT01: Use this form to apply to Companies House to get your company restored.|Companies House Form MT03: Tell Companies House that a moratorium has ended early.	"[["" Does the lawyer provide an outline of the different rescue options available under the Insolvency Act 1986?"", "" Does the lawyer provide an outline of the different restructuring options available under the Companies Act 2006?"", "" Does the lawyer outline the pros and cons of each of these options, and provide advice on the most suitable solution?"", "" Does the lawyer suggest the use of Part 26A restructuring plans?"", "" Does the lawyer speak of the ability of cramming down dissenting creditors in a Part 26A plan, and the conditions for doing it?"", "" Does the lawyer refer to any relevant case law?"", "" Does the lawyer provide the correct advice?""], [3, 3, 4, 3, 3, 3, 3]]"	12.0	[3, 3, 0, 0, 0, 3, 3]	22	Yes|Yes|No|No|No|Yes|Yes|
Q6	I am a real estate developer. Due to the current housing crisis, my mortgages have ballooned, and I am struggling to make money out of the sale of the properties I recently completed. While my housing portfolio is significant, most properties are not yet ready for the market. I am not paying all my suppliers, and the banks are chasing me multiple times per day. If they foreclose, I lose everything. If I complete all my projects, I can repay the banks and the suppliers. However, one of them just filed a petition for winding up my business. I refuse to believe I am insolvent. Is it likely that the petition will be dismissed?	Based on the information provided and the relevant statutes, rules and case law, the possibility of your winding-up petition being dismissed would depend on a number of factors. In your situation, the court will be required to determine whether your company is insolvent. According to the Insolvency Act 1986 section 123(2), a company can be deemed unable to pay its debts if the value of the company’s assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities. Under the Cheyne Finance plc case, the court held that the test of commercial insolvency, which examines a company's ability to pay its debts, does not exclude consideration of prospective or future debts. This implies that all future costs required to prepare every property for sale could be taken into consideration to establish if your company is insolvent. In addition, under BNY Corporate Trustee Service ltd v Eurosail case, the court held that the ability of a company to meet its liabilities, both prospective and contingent, was to be determined on the balance of probabilities. Therefore if it can be proven, on the balance of probabilities, that your company has good prospects of completing its projects and making the necessary repayments, the court may decide that the company is not insolvent. Also, it may be worth noting the decision in the Rushbrooke UK Ltd v 4 Design Concepts Ltd case, where, although the court struck out an application for an injunction restraining the presentation of a winding-up petition because the petitioner was acting without authority, it suggests that if a valid application for an injunction restraining such petition was made, it might have been considered. However, these assessments are complex and intimately tied to the specific financial situation of your company, as well as its future prospects. As such, you are highly encouraged to seek legal advice from an insolvency lawyer to discuss your situation and options comprehensively. It is also crucial to be aware of the serious personal consequences for directors who continue to trade in circumstances where they ought to have concluded that there was no reasonable prospect of the company avoiding insolvency, as set out under the Company Directors Disqualification Act 1986 and the Companies Act 2006.	55.19176363945007	1	Insolvency Act 1986 section A4 (Moratorium)|Insolvency Act 1986 section 124 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 123 (Winding Up of Companies Registered under the Companies Acts)|The Insolvency (England and Wales) Rules 2016 section 7.4 (WINDING UP BY THE COURT)	Re A Company [2022] EWHC 943 (Ch) (Coronavirus; Winding-up petition)|Rushbrooke UK Ltd v 4 Design Concepts Ltd [2022] EWHC 1110 (Ch) (Cross-Border Insolvency; Authority; Directors; Injunctions; Statutory demands; Striking out; Winding-up petitions)|Cheyne Finance plc (No 2), Re [2007] EWHC 2402 (Ch) (Notion of Insolvency; Cash flowS; Balance sheets; Debt; Receivership; Standard of proof)|Casa Estates (UK) Ltd (in liq.), Re [2014] EWCA Civ 383 (Notion of Insolvency; Balance sheets; Cash flows; Transactions at an undervalue)|One Blackfriars Ltd (in liq.), Re [2021] EWHC 684 (Ch) (Administration; Administrators' powers and duties; Conflict of interest; Valuation)|Byblos Bank SAL v Al-Khudhairy (1986) 2 B.C.C. 99 (CA) (Notion of Insolvency; Winding-up orders)|BNY Corporate Trustee Service ltd v Eurosail [2013] UKSC 28 (Notion of Insolvency; Crystallisation; Liabilities; Security)	Companies House Form WU07: Use this form to give notice of a progress report in a winding-up by the court.|Companies House Form DS02: Use this form to withdraw your company's striking off application.|Companies House Form MT03: Tell Companies House that a moratorium has ended early.	"[["" Does the Lawyer identify the different forms of liquidation, and the circumstances in which a company can be liquidated?"", "" Does the lawyer refer to the relevant statutes (ss. 123-124 IA 1986) to determine if a company is insolvent?"", "" Does the law discuss the differences between cash-flow and balance-sheet insolvency?"", "" Does the lawyer refer to s. 122 IA 1986? "", "" Does the lawyer identify the powers the courts have when hearing an insolvency petition? "", "" Does the lawyer refer to ss.125-128 IA 1986?"", "" Does the lawyer discuss the rescue options available to the debtor?"", "" Does the lawyer refer to any relevant case law? "", "" Does the lawyer provide the correct advice?""], [3, 3, 3, 2, 3, 2, 3, 3, 3]]"	14.0	[0, 3, 3, 1.0, 0, 1.0, 0, 3, 3]	25	No|Yes|Yes|No|No|No|No|Yes|Yes|
Q7	My brother and I have been working together on our hand-made furniture shop for 20+ years. Last year, we had to liquidate the business because we could no longer pay the bills. An official receiver was appointed. Yesterday, he came back to us and asked to repay all the dividends we received in the 5 years before insolvency. This is a ridiculous amount of money (£150,000 each). My brother and I never received a salary. The official receiver says that we could not get any dividends because the business was operating at a loss. We were only paid in dividends to avoid income tax, and because my accountant told me that was fine. Surely, we don’t have to repay that money?	"The situation you have described is certainly complex, and I recommend instructing a solicitor if you have not already done so. However, I can provide some general legal guidance based on the information provided and the laws in England. When a company becomes insolvent and goes into liquidation, dividends or other illegal payments that were made to shareholders/directors can be considered a ""transaction at an undervalue"" or even wrongful trading and may be subject to being reclaimed by the liquidator or official receiver to pay off company debts. While it is not unusual for business owners such as yourself to draw income from your business through dividends rather than salary, this can become an issue if the company is running at a loss and becomes insolvent. Essentially, you cannot declare dividends when a company is not making a profit. The case of BTI 2014 LLC v Sequana SA [2016] EWHC 1686 (Ch) highlights this. It held that dividends paid by a company in breach of the Companies Act 2006 could constitute transactions defrauding creditors and could potentially be set aside. Also, under the Insolvency Act 1986's wrongful trading provisions, directors can be held personally liable for company debts if they continued to trade when they knew or should have known there was no reasonable prospect of avoiding insolvent liquidation. However, the claim from the official receiver is subject to the relevant statutory limitation period. As per Insolvency Act 1986, generally, the official receiver should make a claim to set aside a transaction at an undervalue within 2 years of the onset of insolvency. Given the fact-sensitive nature of insolvency, it is important that you get proper legal advice dealing with this issue. Your solicitor will need to review all the relevant facts in order to provide you with tailored advice. Please note that this information is for guidance purposes only and does not constitute definitive advice or establish a client-solicitor relationship."	42.613640785217285	1	Insolvency Act 1986 section 399 (Public Administration (England and Wales))|Insolvency Act 1986 section 132 (Winding Up of Companies Registered under the Companies Acts)|The Insolvency (England and Wales) Rules 2016 section 13.2 (OFFICIAL RECEIVER)|Insolvency Act 1986 section 124 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 123 (Winding Up of Companies Registered under the Companies Acts)	Belmont Park Investments Pty Ltd v BNY Corporate Trustee Services [2011] UKSC 38 (Anti-deprivation principle; Good faith; Priorities; Order of distribution; Security)|Salomon v Salomon & Co. [1897] AC 22 (Limited liability; Piercing the corproate veil; Notion of company)|Prest v Petrodel Resources Ltd [2013] UKSC 34 (Piercing the corporate veil; Limited liability)|MacDonald Dickens & Macklin v Costello [2011] EWCA Civ 930 (Piercing the corporate veil; Breach of contract; Privity of contract; Unjust enrichment)|Gilford Motor Co. Ltd v Horne [1933] Ch. 935 (Piercing the corporate veil; Directors; )|Adams v Cape Industries Plc (1990) BCLC 479 (Foreign jurisdiction; Duty of care; Parent companies; Subsidiary companies; Tortious liability)|Gencor ACP Ltd v Dalby [2000] 7 WLUK 805 (Commission; Directors; Fiduciary duty; Profits)|FG Films Ltd, In Re [1953] 1 All ER 615 (Notion of company; Piercing the corporate veil)|Thomas Cook Group Plc, Re [2019] EWHC 2626 (Ch) (Liquidation; Special managers; Winding-up orders)|Kaytech Int’l Plc, Re [1999] B.C.C. 390 (Investigating and Suppressing Misconduct; Disqualification; Directors)|BTI 2014 LLC v Sequana SA [2016] EWHC 1686 (Ch) (Directors' powers and duties; Breach of fiduciary duty; Good faith; Fiduciary duty)|Re City Build (London) Ltd (in liq.) [2022] EWHC 364 (Ch) (Breach of fiduciary duty; De facto directors; Directors' powers and duties; Shadow directors; Transactions at an undervalue)|DHN Food Distributors Ltd v Tower Hamlets LBC [1976] 3 All ER 462 (Corporate personality; single economic unit; parent company; holdings)	Companies House Form REC1: Use this form to give notice of an administrative receiver's report.|Companies House Form REC5: Use this form to give notice of a deceased administrative receiver.|Companies House Form RM01: Use this form to give notice of the appointment of an administrative receiver, receiver or manager of a company's property or undertaking.	"[["" Does the lawyer discuss their client\u2019s role (de jure, de facto or shadow director) within the company?"", "" Does the lawyer discuss directors\u2019 duties with the client?"", "" Does the lawyer outline the relevant rules applicable to directors (ss. 212-213 IA 1986)?"", "" Does the lawyer outline the consequences (e.g. disqualification) arising from the director\u2019s misfeasance?"", "" Does the lawyer refer to the Company Director Disqualification Order Act 1986?"", "" Does the lawyer refer to any relevant case law?"", "" Does the lawyer provide the correct advice?""], [4, 4, 4, 4, 3, 3, 3]]"	9.5	[0, 0, 2.0, 0, 1.5, 3, 3]	25	No|No|No|No|No|Yes|Yes|
Q8	My business went into liquidation last year. I was the owner and director. A liquidator was appointed. He is threatening to sue me for breaching my duties as a director unless I return the money I received as monthly repayments for a loan I gave to my company. He’s also threatening to start a disqualification procedure against me for the same reason. I believe I did nothing wrong – this was a fair loan with interests below the market rate. However, I cannot risk being disqualified, because I am also working as a director in my sister’s company. What can I do? Should I return the money?	I understand your concerns, and I’ll do my best to give you an informed perspective on your situation. It's important to clarify, however, that the advice given can only be general in nature. For specific legal advice tailored to your circumstance, please consult a legal practitioner. As a company director, it's correct that one of your obligations is to act in the best interest of the company, especially when insolvency looms. This is in line with the Companies Act 2006 s.172, along with the obligation to take into account creditors' interest under s.172(3). There are also further rules under the Insolvency Act 1986 concerning director liabilities, mainly under s.212. This section gives the liquidator the ability to bring a misfeasance claim against you if he believes that you have misapplied or retained, or become responsible or accountable for, any money or other property of the company. In the case of HLC Environmental Projects Ltd, Re [2013] EWHC 2876 (Ch), the court confirmed that the liquidator is entitled to financial relief against a company director under the misfeasance procedure where he had caused the company to make payments, despite knowing that the company had been unable to pay its debts as they came due within s.123(1)(e) and that the value of its assets was less than its liabilities under s.123(2). With regards to loans from directors to their companies, it's not inherently wrong for a company to repay a loan to its director. However, issues may arise if there are preferential payments made over other creditors, especially in a situation when the company is insolvent. Each fact and circumstance surrounding this will need to be scrutinized to ascertain if the payments were correct or not. As for your worry about being disqualified as a director, the Company Directors Disqualification Act 1986 does empower the court to disqualify a person from being a director of a company. Disqualification is considered a severe measure and typically follows misconduct of some kind. As you can imagine, these are complex areas of law, and I strongly recommend that you seek legal counsel to assist you in this process. They can provide you with a more specific advice based on the full circumstances of your case and the loan arrangements.	58.16250371932984	1	Insolvency Act 1986 section 108 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 91 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 124 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 123 (Winding Up of Companies Registered under the Companies Acts)|The Insolvency (England and Wales) Rules 2016 section 6.23 (CREDITORS' VOLUNTARY WINDING UP)	HLC Environmental Projects Ltd, Re [2013] EWHC 2876 (Ch) (Cash flows; Notion of insolvency; Directors' liabilities; Directors' powers and duties; Liquidators' powers and duties; Misfeasance; Payments in insolvency)|Cheyne Finance plc (No 2), Re [2007] EWHC 2402 (Ch) (Notion of Insolvency; Cash flowS; Balance sheets; Debt; Receivership; Standard of proof)|Centralcrest Engineering Ltd, Re [1999] 9 W.L.U.K. 176 (Misconduct; Liquidators' duties; Misfeasance; Tortious liability; Trading)|Casa Estates (UK) Ltd (in liq.), Re [2014] EWCA Civ 383 (Notion of Insolvency; Balance sheets; Cash flows; Transactions at an undervalue)|Lehman Brothers Int’l (Europe) (in admin.) Re [2014] EWHC 704 (Ch) (Administration; Contributories; Foreign currency transactions; Liquidation; Set-off; Subordination agreements)|Byblos Bank SAL v Al-Khudhairy (1986) 2 B.C.C. 99 (CA) (Notion of Insolvency; Winding-up orders)|BNY Corporate Trustee Service ltd v Eurosail [2013] UKSC 28 (Notion of Insolvency; Crystallisation; Liabilities; Security)	Companies House Form LIQ03: Use this form to give notice of progress report in voluntary winding up.|Companies House Form WU04: Use this form to give notice of the appointment of liquidator in a winding-up by the court.|Companies House Form 600CH: Use this form to tell Companies House of an appointment of liquidator in a voluntary winding up by the members or creditors.	"[["" Does the lawyer discuss their client\u2019s role (de jure, de facto or shadow director) within the company?"", "" Does the lawyer discuss directors\u2019 duties with the client?"", "" Does the lawyer outline the relevant rules applicable to directors (ss. 212-213 IA 1986)?"", "" Does the lawyer outline the consequences (e.g. disqualification) arising from the director\u2019s misfeasance?"", "" Does the lawyer refer to the Company Director Disqualification Order Act 1986?"", "" Does the lawyer refer to any relevant case law?"", "" Does the lawyer provide the correct advice?""], [4, 4, 4, 4, 3, 3, 3]]"	19.5	[0, 4, 4, 4, 1.5, 3, 3]	25	No|Yes|Yes|Yes|No|Yes|Yes|
Q9	My business is operating at a loss. Chase Bank is my major lender, and they have a security over my home. I fell into arrears towards several suppliers, but I do believe I can turn around my business if I am given a bit more time to repay my debts. What can I do?	Your situation involves several complex issues, and it's vital to approach it carefully to protect both your personal and business interests. Here are a few suggestions based on your situation. 1. Communication: Reach out to your creditors, including Chase Bank and your suppliers, and inform them of your situation. Communicate your plans and timetable for repayment of the debt and provide reassurances about your commitment to turning the business around. It's best to work out a payment plan that you can realistically manage considering your current financial situation. 2. Restrictions on the use of home as security: Depending on the circumstances and the terms of your loan agreement, Chase Bank may not have an automatic right to enforce its security over your home. You may want to seek legal counsel to review your loan agreement and advise accordingly. 3. Insolvency options: As per the information you provided, it appears your company may meet the legal standards for insolvency. If this is the case, you might consider some form of insolvency/rescue procedure, such as administration or a company voluntary arrangement (CVA). Both procedures would provide your company with a moratorium, which would give you some breathing space to turn the business around. 4. Directors' duties: As per BTI 2014 LLC v Sequana SA, as a director, you have a duty to act in good faith in the interests of the company. If insolvency looms, you are obliged to consider creditors’ interests. Failure to act in the best interest of creditors can lead to personal liability for company debts. 5. Seek legal and financial advice: Given the seriousness of your situation, it would be wise to consult with a solicitor and accountant familiar with insolvency and restructuring. This will ensure you understand all the legal obligations and the potential risks involved. It's important that you take action as swiftly as possible. If your company becomes insolvent, it may be required, under the Insolvency Act 1986, to cease trading to avoid wrongful trading charges, and you could face disqualification as a company director, per the Company Directors Disqualification Act 1986. So, take action sooner rather than later to best safeguard your company and personal position. 	50.096997022628784	1	Insolvency Act 1986 section 269 (Bankruptcy)|Insolvency Act 1986 section 124 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 123 (Winding Up of Companies Registered under the Companies Acts)|Companies Act 2006 section 226C (A company's directors)|Insolvency Act 1986 section 224 (Winding Up of Unregistered Companies)	"Cheyne Finance plc (No 2), Re [2007] EWHC 2402 (Ch) (Notion of Insolvency; Cash flowS; Balance sheets; Debt; Receivership; Standard of proof)|Petitioner v Company [2022] 6 WLUK 131 (Coronavirus; Demands; Inability to pay debts; Loan agreements; Winding-up petitions
)|Casa Estates (UK) Ltd (in liq.), Re [2014] EWCA Civ 383 (Notion of Insolvency; Balance sheets; Cash flows; Transactions at an undervalue)|Re Pure Zanzibar Ltd [2022] EWHC 971 (Ch) (Creditors' voluntary winding-up; Directors disqualification; Disqualification periods; Mitigation; Wrongful trading)|Byblos Bank SAL v Al-Khudhairy (1986) 2 B.C.C. 99 (CA) (Notion of Insolvency; Winding-up orders)|BTI 2014 LLC v Sequana SA [2016] EWHC 1686 (Ch) (Directors' powers and duties; Breach of fiduciary duty; Good faith; Fiduciary duty)|BNY Corporate Trustee Service ltd v Eurosail [2013] UKSC 28 (Notion of Insolvency; Crystallisation; Liabilities; Security)"	Companies House Form DS01: Use this service to apply to strike off a company from the Companies House register. It costs £8 to apply online, or £10 for a paper application.|Companies House Form RT01: Use this form to apply to Companies House to get your company restored.|Companies House Form MT03: Tell Companies House that a moratorium has ended early.	"[["" Does the lawyer identify the different forms of liquidation, and the circumstances in which a company can be liquidated? "", "" Does the lawyer refer to the relevant statutes (ss. 123-124 IA 1986) to determine if a company is insolvent?"", "" Does the law discuss the differences between cash-flow and balance-sheet insolvency?"", "" Does the lawyer discuss the rescue options available under Insolvency Law 1986?"", "" Does the lawyer discuss the restructuring options available under Companies Act 2006?"", "" Does the lawyer refer to any relevant case law? "", "" Does the lawyer provide the correct advice?""], [4, 4, 3, 4, 4, 3, 3]]"	15.0	[0, 2.0, 3, 4, 0, 3, 3]	25	No|No|Yes|Yes|No|Yes|Yes|
Q10	My business went into liquidation last March. I tried my best to avoid it. I may have preferred some creditors over others, but simply because they knew I was struggling, and they would not give me their products on credit. I may also have taken some money out of the business account to repay the mortgage on my house. Surely, I did nothing wrong? Do I risk anything?	I'm sorry to hear about your business. As an insolvency lawyer, it's important I clarify that while as a director you may use discretion to decide how to run your business, certain actions taken in the lead up to insolvency could have legal consequences. This is particularly so if they seem to favour some creditors over others or deplete the company's assets, which should normally be shared out fairly amongst all creditors in a liquidation scenario. When insolvency becomes inevitable, your duties as a director shift from the shareholders to the creditors. This is emphasized in the case of BTI 2014 LLC v Sequana SA [2016] EWHC 1686 (Ch). Any actions that are detrimental to creditors could potentially be reversed by a liquidator and possibly lead to personal liability. This includes preferential treatment of some creditors over others (Insolvency Act 1986 section 239) and taking money out of the company for personal benefit when you knew or ought to have known that there was no reasonable prospect of avoiding insolvent liquidation (Insolvency Act 1986 section 214: Wrongful trading). You also asked about the personal risk. This can be quite serious. If it appears to the liquidator that you may be guilty of wrongful trading, or if you played a part in the preferential treatment of certain creditors, they may bring a claim against you personally. The court could then order you to contribute to the company’s assets. Also, if you're found unfit to be involved in the management of a company, you could be disqualified from being a company director for up to 15 years under the Company Directors Disqualification Act 1986. This can be a complex area and the outcome can depend on a detailed consideration of the circumstances. Therefore, it is vital that you seek professional advice. I'd recommend discussing this with an insolvency practitioner or legal adviser who can provide you with guidance based on your specific situation.	45.73007035255432	1	Insolvency Act 1986 section A16 (Moratorium)|Insolvency Act 1986 section 124 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 123 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 188 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 247 (Interpretation for First Group of Parts)	Belmont Park Investments Pty Ltd v BNY Corporate Trustee Services [2011] UKSC 38 (Anti-deprivation principle; Good faith; Priorities; Order of distribution; Security)|Marches Credit Union Ltd, Re [2013] EWHC 1731 (Ch) (Liquidation; Locus standi; Petitions; Union)|Cheyne Finance plc (No 2), Re [2007] EWHC 2402 (Ch) (Notion of Insolvency; Cash flowS; Balance sheets; Debt; Receivership; Standard of proof)|Casa Estates (UK) Ltd (in liq.), Re [2014] EWCA Civ 383 (Notion of Insolvency; Balance sheets; Cash flows; Transactions at an undervalue)|Byblos Bank SAL v Al-Khudhairy (1986) 2 B.C.C. 99 (CA) (Notion of Insolvency; Winding-up orders)|BTI 2014 LLC v Sequana SA [2016] EWHC 1686 (Ch) (Directors' powers and duties; Breach of fiduciary duty; Good faith; Fiduciary duty)|BNY Corporate Trustee Service ltd v Eurosail [2013] UKSC 28 (Notion of Insolvency; Crystallisation; Liabilities; Security)	Companies House Form LIQ02: Use this form to give notice of a statement of affairs.|Companies House Form LIQ06: Use this form to give notice of a liquidator's resignation in members' voluntary liquidation or creditors' voluntary liquidation.|Companies House Form AM22: Use this form to give notice of a move from administration to creditors' voluntary liquidation.	"[["" Does the lawyer mention the directors\u2019 duties under the Companies Act 2006, ss. 250-277?"", "" Does the lawyer discuss the general remedies available against delinquent directors (ss. 212-214 IA 1986)?"", "" Does the lawyer discuss the risks associated with preferential payments to some creditors (s. 239 IA 1986)?"", "" Does the lawyer outline the consequences (e.g. disqualification) arising from the director\u2019s misfeasance? "", "" Does the lawyer refer to the Company Director Disqualification Order Act 1986?"", "" Does the lawyer refer to any relevant case law?"", "" Does the lawyer provide the correct advice?""], [4, 4, 4, 4, 3, 3, 3]]"	19.5	[0, 4, 4, 4, 1.5, 3, 3]	25	No|Yes|Yes|Yes|No|Yes|Yes|
Q11	My life-long partner just left me for an Italian scugnizzo who is 15 years younger than her. What’s worse is that before leaving, she emptied our joint business account and she stopped paying the joint mortgage we have on our business. The bank is threatening legal actions against me, and to foreclose on the business property. What can I do? By the way, I cannot contact my (ex) partner but I believe she’s now in Italy with her new partner.	I'm sorry to hear about your situation, it does sound quite complicated. However, as a corporate insolvency lawyer, I can guide you through some steps you can consider. Please bear in mind that it's better to consult with a lawyer who knows your case in detail. Firstly, as regards the joint company bank account, if you consider the amounts taken by your ex-partner to be unfair or unjustified, you may have a claim against your ex-partner for an unlawful extraction of company funds. This would especially be the case if she was acting in her capacity as a director of the company. Company Directors must act in the best interests of the company and not for their own personal benefit. This falls under the duties of directors according to the Companies Act 2006. As for your property, a lot will depend on what kind of legal charge your bank has over the property. It might be the case that if you stop paying the mortgage, the bank can repossess and sell the property. If you have a jointly held mortgage your ex-partner is also liable for the mortgage to the bank, but enforcement may be difficult if she is now residing in Italy. Now, regarding the bank threatening legal actions, you may be dealing with a situation of insolvency. You may want to engage with the bank to explore whether there could be a possibility of restructuring the debt or exploring other ways to work through this situation. It would be advisable to look for a lawyer with expertise in insolvency to guide you through this process. If your company is in danger of insolvency, you may need to consider engaging an insolvency practitioner and potentially entering into formal insolvency proceedings, such as administration or liquidation. If you enter into formal insolvency proceedings it may be possible to sell the company's assets, pay off its debts, and potentially continue running the business. Furthermore, if your ex-partner is unwilling to cooperate or discuss matters, you might need to consider taking legal action to recover the funds or assets she has taken. Although this may be complicated by her residing in Italy now, an English court judgment could potentially be enforced in Italy under European enforcement mechanisms. Again, it's very important to get legal advice tailored to your particular circumstances. The above is just a general rundown of some potential steps to consider.	46.255234479904175	1	Companies Act 2006 section 154 (A company's directors)|Insolvency Act 1986 section 251R (Debt relief orders)|Insolvency Act 1986 section 124 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 123 (Winding Up of Companies Registered under the Companies Acts)|Insolvency Act 1986 section 365 (Bankruptcy)	Barclays Bank Plc v Eustice [1995] 1 W.L.R. 1238 (Directors' duties and powers; Misconduct; Transactions at an undervalue)|Cheyne Finance plc (No 2), Re [2007] EWHC 2402 (Ch) (Notion of Insolvency; Cash flowS; Balance sheets; Debt; Receivership; Standard of proof)|Casa Estates (UK) Ltd (in liq.), Re [2014] EWCA Civ 383 (Notion of Insolvency; Balance sheets; Cash flows; Transactions at an undervalue)|Byblos Bank SAL v Al-Khudhairy (1986) 2 B.C.C. 99 (CA) (Notion of Insolvency; Winding-up orders)|BTI 2014 LLC v Sequana SA [2016] EWHC 1686 (Ch) (Directors' powers and duties; Breach of fiduciary duty; Good faith; Fiduciary duty)|Re Entertainment Ltd [2016] EWHC 1545 (Ch) (Cross-Border Insolvency; Centre of main interests; Cross-border insolvency; Foreign proceedings)|BNY Corporate Trustee Service ltd v Eurosail [2013] UKSC 28 (Notion of Insolvency; Crystallisation; Liabilities; Security)	Companies House Form DS01: Use this service to apply to strike off a company from the Companies House register. It costs £8 to apply online, or £10 for a paper application.|Companies House Form DS02: Use this form to withdraw your company's striking off application.|Companies House Form MT03: Tell Companies House that a moratorium has ended early.	"[["" Does the Lawyer identify the different forms of liquidation, and the circumstances in which a company can be liquidated?"", "" Does the lawyer refer to the relevant statutes (ss. 123-124 IA 1986) to determine if a company is insolvent? "", "" Does the lawyer mention the directors\u2019 duties under the Companies Act 2006, ss. 250-277? "", "" Does the lawyer discuss the general remedies available against delinquent directors (ss. 212-214 IA 1986)? "", "" Does the lawyer outline the consequences (e.g. disqualification) arising from the director\u2019s misfeasance?  "", "" Does the lawyer refer to the Company Director Disqualification Order Act 1986? "", "" Does the lawyer refer to any relevant case law? "", "" Does the lawyer provide the correct advice?""], [3, 3, 3, 3, 4, 3, 3, 3]]"	4.5	[0, 0, 1.5, 0, 0, 0, 0, 3]	25	No|No|No|No|No|No|No|Yes|
Q12	After Brexit, I set up a business in the Netherlands. This is a limited liability company. I am the sole director of that company. There are no employees in the Netherlands, just some people I hire occasionally to load and unload the lorries that distribute my products to the rest of Europe. I have now decided to stop selling goods to Europe, because it is not profitable. I want to wind-up the business here in the UK. Can I do it?	Winding-up a business is a formal procedure that involves seeking the advice of an insolvency practitioner or applying to the courts. As a UK resident and sole director of a limited liability company based in the Netherlands, the processes for different countries will depend upon the specific regulations of that country. This advice only pertains to the UK laws as per your request and does not cover the specifics for Netherlands regulations. You should seek local legal advice in the Netherlands for the exact process in that jurisdiction. In the UK, the Insolvency Act 1986 lays out the criteria and process for winding up a company. You may consider a Members' Voluntary Liquidation (MVL) if your company is solvent (i.e., able to pay off all its debts). It involves bringing the company to a formal end; any assets left after all debts, costs and charges have been paid off get distributed among the shareholders. Before winding up, you will need to make a 'Declaration of Solvency' declaring and demonstrating that you have thoroughly reviewed the company's affairs and you have reasonable ground to believe that the company can pay its debts in full in the specified period not exceeding 12 months. If your company is insolvent (i.e., can't pay its debts), you may apply for a Creditors' Voluntary Liquidation (CVL). This also involves winding up your company and distributing the assets, but the process is more complex. A meeting of creditors must be held to discuss the winding-up proposal, and it needs to be handled by an insolvency practitioner. You should be aware that directors have certain duties and responsibilities throughout the process under the Company Directors Disqualification Act 1986 and relevant case laws such as McTear v Eade [2019] EWHC 1673 (Ch), and breaches can lead to serious repercussions, including disqualification, fines, or even imprisonment. In terms of winding up the company in the Netherlands, you will need to follow the appropriate Dutch law processes and should involve a local lawyer familiar with Dutch company law and process. Lastly, remember to notify Companies House about your decision to wind up the company using the appropriate forms. Involving an insolvency practitioner at the earliest opportunity can help ensure that all necessary legal steps are taken accurately.	67.27662563323975	1	Companies Act 2006 section 3 (General introductory provisions)|Companies Act 2006 section 58 (A company's name)|Companies Act 2006 section 59 (A company's name)	Bristol Airport Plc v Powdrill [1990] Ch 744 (Administration; Liens; Security)|Prest v Petrodel Resources Ltd [2013] UKSC 34 (Piercing the corporate veil; Limited liability)|McTear v Eade [2019] EWHC 1673 (Ch) (Breach of fiduciary duty; Directors' duties and powers; Limited liability partnerships; Liquidation; Misfeasance)	Companies House Form IC01: Us this form to give notice of the intention to carry on business as an investment company.|Companies House Form MR06: Use this form to register a statement of a company acting as a trustee after a charge created on or after 6 April 2013 has been registered.|Companies House Form RR02: This form is for public companies to re-register as a private limited company.	"[["" Does the lawyer refer to the relevant laws (European Insolvency Regulation recast (2015); Cross-Border Insolvency Regulations (2005); Brexit Agreements (2020))?"", "" Does the lawyer discuss the difference between COMI and establishment?"", "" Does the lawyer discuss the implications of Brexit for the recognition and enforcement of insolvency judgments?"", "" Does the lawyer refer to any relevant case law?"", "" Does the lawyer provide the correct advice?""], [5, 5, 5, 5, 5]]"	10.0	[0, 0, 0, 5, 5]	25	No|No|No|Yes|Yes|
TOTAL									139.0		296