Legislative changes in effect today: what IPs need to know

Previously under section 165 IA 86, liquidators in a voluntary winding up would have to seek sanction of the company (in members’ voluntary liquidation) or of the court or liquidation committee (in creditors’ voluntary liquidation) in order to exercise their powers to pay debts, compromise claims etc.

Until now, directors’ duties under the Companies Act 2006 (CA 06) have only applied to shadow directors “where, and to the extent that, the corresponding common law rules or equitable principles so apply” (section 170(5) CA 06). What this means in practice has not always been clear, so SBEEA has replaced this section 170(5) CA 06 and stated that general directors’ duties apply to shadow directors where and to the extent that they are capable of applying.