Formal Appointments

 

This relates to Appointments in any given formal insolvency proceedings. 

The nature of any such Appointment would depend on the individual circumstances and there follows an outline of various scenarios:-

Nomination as Trustee or Liquidator

Where a creditor has exhausted all debt recovery procedures they are then faced with a decision whether to proceed with taking steps towards the formal insolvency of the Debtor.  The nature of the formal insolvency of any given Debtor will depend on who that debtor is as follows:-

Where the Debtor is an individual or a Partnership, the formal insolvency is Sequestration.

Where the Debtor is a Limited Company the formal insolvency is Liquidation or Administration.

 Where nomination is in a Sequestration, then the post for which nomination is accepted, is as Trustee.  When nomination is in respect of a Liquidation, the nomination is as either Provisional Liquidator or Interim Liquidator. When nomination is in respect of an Administration, the nomination is as Administrator. 

Only authorised Insolvency Practitioners can be nominated to either of the above positions and it would be one of our Insolvency Practitioners who would accept such nominations.

Before accepting any nominations to any of the above appointments. the financial basis on which the acceptance of the nomination is based will require to be agreed in advance.  Whilst payment of remuneration and outlays, following on from the formal appointment, has a first call on the assets and income realised within the formal insolvency, there are, of course, often little or no guarantee prior to appointment that the Debtor or Company has any income or assets which could be realised for those purposes and it may be that some form of underwriting agreement would be required. 

All of the foregoing would be fully discussed and agreed with any given creditor prior to accepting nomination in any potential insolvency.  

Nomination as Creditor Representative

From time to time, creditors may receive notification that one of their Debtors has been made formally insolvent with either their estate sequestrated or the Company liquidated or placed in Administration.  We at Hastings & Co. can act as your representative in dealings with the Insolvency Practitioner who has been formally appointed as Trustee, Liquidator or Administrator. 

Such representation would take the form of the following:- 

Ensuring your claim in the insolvency is timeously and accurately lodged and an acknowledgement received from the Trustee/Liquidator/Administrator. 

Attendance at Creditor's Meetings and making appropriate enquiries on the  administration of the insolvency followed by a subsequent report to the creditor.

Accepting nomination to act as a creditors representative on any creditors committee.

Again, prior to accepting nomination to act as a creditor's representative, the terms of the engagement between ourselves and the creditor would be fully agreed in advance.