When a business faces insolvency, one of the most overlooked yet critical aspects is ensuring that administrators and receivers are legally and correctly appointed. In this episode of The Cut, expert insolvency lawyer Nick Christiansen from Sparke Helmore joins the conversation with host Simon Cathro, to break down valid vs. invalid appointments, the risks insolvency practitioners face, and what business owners need to know before making any decisions.
From understanding how appointments are challenged in court to why remuneration is such a hot topic in insolvency, this discussion sheds light on the legal and financial pitfalls that can make or break a business in distress. If you're a business owner, creditor, or insolvency professional, this episode is packed with insights that could save you from costly mistakes.
Key points discussed in this episode:
- Valid vs. Invalid Appointments Matter – Administrators and receivers must conduct due diligence to ensure legal appointments; mistakes can result in personal liability.
- Remuneration Isn't Always Guaranteed – Insolvency professionals must prove their fees are reasonable, and creditors can challenge them in court.
- Creditors Have More Power Than They Think – From challenging fees to influencing court decisions, creditors play a bigger role in insolvency than most realize.
Links:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
