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Unsecured Creditor
Dark Side of Liquidation
When a limited company enters liquidation, for whatever reason, revenue from the sale of the company’s assets is redistributed amongst creditors and shareholders in order of priority. The director’s powers cease and an insolvency practitioner (IP) takes over managing the company’s affairs. The director no longer has any control over the company or its…
Read MoreFCA and FSCS: “Investors should do more research”
A survey by the Financial Services Compensation Scheme (FSCS) and Financial Conduct Authority (FCA) found that many investors avoid doing due diligence because they found the process “complicated” and “time consuming.” According to the results of the study, 42% of Britons aged 18 to 24, who have money in investments, claim their latest investment was…
Read MoreBeware the professional enabler
A lawyer, finance expert, or some other professional who acts as an enabler of an economic crime is referred to as a professional enabler. These are the people who will create, ignore, fail to identify, and purposely facilitate an economic crime or criminal system. In most cases, we only see the ‘face’ of the crime.…
Read MoreConsumers warned over pre-paid energy scams
Britain’s leading fraud prevention service, Cifas, has warned gas and electricity customers to avoid pre-paid energy scams disguised as discounted offers. The scams have already affected over 188,000 victims, including British Gas, EDF Energy, E.ON, Scottish Power, and SSE customers. It’s no secret the cost of living is increasing at a startling rate. Many UK…
Read MoreWhen digital currency goes wrong Netflix documentary
Netflix’s newest true-crime offering is a cautionary tale about the world of cryptocurrency investments. Trust No One: The Hunt for the Crypto King follows the rise and fall of Gerald Cotten, founder of the QuadrigaCX cryptocurrency exchange. The result is a gripping documentary that attempts to trace the $150million (around £115m) investors lost following Cotton’s…
Read MoreEnd of temporary insolvency measures
Last week, the Government withdrew the temporary insolvency measures introduced two years earlier to support businesses during the Covid-19 pandemic. Creditors could obtain winding-up petitions under the temporary legislation (enacted as part of the Corporate Insolvency and Governance Act 2020). However, the debt threshold for winding-up petitions increased to £10,000 and creditors were compelled to:…
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