5 Elements for Chinese Companies trading into the UK (Parts 1 to 5)
5 Elements for Chinese Companies trading into the UK (Parts 1 to 5)
Valentine Kerboull
Absent a retention of title clause (or any other protective clause in a contract see Part 1 in this series, a creditor of an insolvent company has the following options:
1. A creditor should file a proof of debt in the insolvency process, supported by evidence such as the sales contract, proof of delivery and unpaid invoices. Aside from filing a proof of debt, in administration and liquidation, creditors are usually barred from starting proceedings against the company.
2. If the directors of the now insolvent company entered into transactions at an undervalue for the purpose of defrauding creditors (for example putting assets beyond reach), a person prejudiced by such transaction may apply for leave from the court to challenge it.
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