Creditors’ claims for damages in tort or contract Is the claim admissible? An unliquidated claim for damages in tort or contract may be admitted as claim against a company in liquidation. Section 303 of the Companies Act 1993 provides that…
Challenging the liquidator’s decision: A liquidator’s decisions can be challenged. A creditor who is dissatisfied with a liquidator’s decision to reject the creditor’s claim or the liquidator’s estimation of the amount claimed may apply under section 284(1)(b) of the Companies…
Should the claim be admitted or rejected? Section 304 sets out the process for admitting and rejecting creditors’ claims. A creditor must provide full particulars of the claim and identify any document that evidences or substantiates the claim. The creditor…
Other avenues for creditors: If a creditor’s claim is rejected, the creditor may still seek to establish liability against the company by issuing court proceedings and obtaining judgment. Under section 248 of the Companies Act 1993 a person cannot commence…
Section 284 (1) of the Companies Act 1993 states: On the application of the liquidator, a liquidation committee, or, with the leave of the court, a creditor, shareholder, other entitled person, or director of a company in liquidation, the court…
When a company enters the Insolvency stage it's tough for all parties. The person or body that has been running the company will feel sad knowing that their business didn't work in this time or season. Sometimes it's no fault…