Corporate insolvency United Kingdom insolvency law
1 corporate insolvency 1.1 companies , credit 1.2 meaning of insolvency 1.3 priorities corporate insolvency corporate liquidations spiked after financial crisis of 2007-2008, after pre-crisis norm of around 13,000 per year. corporate insolvencies happen because companies become excessively indebted. under uk law, company separate legal person people have invested money , labour it, , mediates series of interest groups. invariably shareholders, directors , employees liability limited amount of investment, against commercial creditors can lose no more money paid shares, or jobs. insolvencies become intrinsically possible whenever relationship of credit , debt created, happens through contracts or other obligations. in section of economy competitive markets operate, wherever excesses possible, insolvencies happen. meaning of insolvency inability repay debts, although law isolates 2 main further meanings. first, court order company wound (and assets sold off) or administrator appointed (t...