This ppt was used in a Legal English lesson by my partner, Dra. Daniela Zabala. Legal English at Universidad Católica de Cuyo sede San Luis. Lesson held on 2 October 2020. INsolvency. Company Law. Liquidation of a Company.

1. The Language of
Company Law II
Daniela Zabala- Seminario Inglés Jurídico 2020 –
Universidad Católica de Cuyo

2. Insolvent Companies
■ If a company cannot pay its debts
when they are due, the company is
insolvent.
■ The Directors must decide which of
the available insolvency proceedings
will benefit the company.
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3. 3
INSOLVENCY
PROCEEDINGS
Administration
Receivership
Creditors’ voluntary
liquidation
Compulsory
liquidation

4. Insolvency Proceedings
1) Administration
■ A company is in administration when there is
an insolvency practitioner appointed to be
the administrator of the company.
■ The administrator takes control of the
company and has to manage it for the benefit
of the company’s creditors.
■ The aim is to try to ‘rescue’ the company or, if
that is not possible to sell the company’s
assets for the best possible price.4

5. Insolvency Proceedings
2) Receivership
■ A company is in receivership when a
creditor, whose debt is secured by a
charge over the company’s assets,
appoints a receiver.
■ The receiver can sell the assets subject
to the charge and use the money he or
she receives to repay the creditor.
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6. Insolvency Proceedings
3) Creditors’ voluntary liquidation
■ When the company cannot pay its debts, the
shareholders pass a resolution stating that the
company cannot continue in business due to its
debts.
■ A liquidator is appointed to wind up the company.
He has to realise assets of the company and give
the proceeds to the creditors and if any money is
left, he will give that money to the shareholders.
■ At the end of the process the Registrar at
Companies House dissolves the company.6

7. Insolvency Proceedings
4) Compulsory Liquidation
■ This takes place when a creditor presents a
winding-up petition to the court, on the
grounds that the company is insolvent and
the court makes an order for the company to
be wound up.
■ Following to the order, the Official Receiver
becomes the liquidator of the company.
■ At the end of the liquidation, the company is
dissolved.
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8. Lecture on Company
Law
Listening Activity
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9. A career as an insolvency
practitioner
Reading Activity
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10. 10

11. 11

12. 12

13. Decide whether these statements are true or false
1. The insolvency practitioner profession is rapidly
expanding, with many new practitioners being
licensed every year.
2. Both revised legislation and a change in the way
people think have a led to the trend of rescuing
businesses.
3. Once a practitioner has been licensed by one of
the recognized professional bodies, this license
cannot be cancelled.
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14. Discussing insolvency work
Explain these phrases from the text with your own
words.
■ The viability of a business
■ The integrity of the directors of a business
■ Hard-bitten businessmen with an eye for a
bargain
■ To rescue a business
Have you ever considered practicing in this area of
the law?
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15. Thanks!
Any questions?
You can find me at daniela.zabala26@gmail.com
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Source: Mason Catherine. “The Lawyers English Language Coursebook”, Second Edition,
Global Legal English LTD, 2014, England.
Amy Krois-Linder and Translegal. “International Legal English.” Cambrige University Press.