Principles of Corporate Insolvency Law
Encyclopedia
Principles of Corporate Insolvency Law (3rd edn Thomson, London 2005) by Roy Goode
of the University of Oxford
is a leading textbook on UK insolvency law
. The forthcoming edition in 2010 will be taken over by Professor Robert Stevens, of University College London
.
Roy Goode
Sir Royston Miles "Roy" Goode CBE QC is an academic commercial lawyer in the United Kingdom. He founded the Centre for Commercial Law Studies at Queen Mary, University of London. He was awarded the OBE in 1972 followed by the CBE in 1994 before being knighted for services to academic law in...
of the University of Oxford
University of Oxford
The University of Oxford is a university located in Oxford, United Kingdom. It is the second-oldest surviving university in the world and the oldest in the English-speaking world. Although its exact date of foundation is unclear, there is evidence of teaching as far back as 1096...
is a leading textbook on UK insolvency law
UK insolvency law
United Kingdom insolvency law deals with the insolvency of firms and individuals in the United Kingdom. The important statutes are the Insolvency Act 1986, as amended by the Enterprise Act 2002, as well as the Company Director Disqualification Act 1986 and the Companies Act 2006.Insolvency is a...
. The forthcoming edition in 2010 will be taken over by Professor Robert Stevens, of University College London
University College London
University College London is a public research university located in London, United Kingdom and the oldest and largest constituent college of the federal University of London...
.
Outline of principles
Professor Goode's suggested ten principles of corporate insolvency law are as follows.- corporate insolvency law recognises rights accrued under the general law prior to liquidation
- only the assets of the debtor company are available for its creditors
- security interests and other real rights created prior to the insolvency proceeding are unaffected by the winding up
- the liquidator takes the assets subject to all limitations and defences
- the pursuit of personal rights against the company is converted into a right to prove for a dividend in the liquidation
- on liquidation the company ceases to be the beneficial owner of its assets
- no creditor has any interest in specie in the company's assets or realisations
- liquidations accelerates creditors' rights to payment
- unsecured creditors rank pari passuPari passuPari passu is a Latin phrase that literally means "with an equal step" or "on equal footing." It is sometimes translated as "ranking equally", "hand-in-hand," "with equal force," or "moving together," and by extension, "fairly," "without partiality."...
- members of a company are not as such liable for its debts