Clifford Chance

New Insolvency Regulations - effect on Salvage and EUIR

4 April 2005

In August 2003, we distributed a note which in part discussed the case of Re The Salvage Association [2003] EWCH (Ch) 1028 ("Salvage"). The Salvage case held that an administration order could be made in respect of a UK entity which was not registered under any of the UK Companies Acts (in that case, against an entity incorporated by Royal Charter).

The Insolvency Act 1986 (Amendment) Regulations 2005 (which will come into force on 13th April 2005) (the "Amendment Regulations") amend the Insolvency Act 1986 (the "1986 Act") to clarify that it is only companies as defined by section 735(1) of the Companies Act 1985 and certain companies formed or incorporated outside the United Kingdom that can enter administration or a company voluntary arrangement.

Download PDF