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Corporate Recovery: Articles
The team at JMW writes articles on corporate recovery and insolvency to ensure our clients are kept informed of the latest developments in the business world. Scroll down to begin your search through our articles.
Current practice in relation to sole director/shareholder companies is that it is tax is efficient to take funds out of a company by way of dividends, with perhaps a low salary equal to the tax free limit. Over time directors can often come to see the combined sums reaching their account simply as their “remuneration”. However, there are key differences between a salary and a dividend aside from their tax treatment which mean that a well advised director may wish to periodically review how funds are taken from a company. This article considers the position of dividends upon an insolvency of a company, particularly in light of the effect of the coronavirus.
The security review is often an essential element in a lender’s strategy to recovery the of its money from a borrower. It allows a lender to identify issues relating to its lending documents which have either existed since their creation or arisen during the course of the loan. The identification of such issues early on is likely to impact on the lender’s dealings with the borrower, guarantors and other secured creditors. Its findings may dictate the tone of the approaches made to these persons and other stakeholders.
Case Bulletin: FCA Test Case: High Court signals good news for holders of business interruption insurance and creditors of distressed businesses
In its decision in the matter of The Financial Conduct Authority v. Arch and Others , the High Court has provided some welcome news for businesses who have suffered disruption as a result of the COVID-19 pandemic and the government response thereto.