It’s a matter of give and take!

Progress is not always a good thing.

For example, I love my mobile phone – I cannot believe how I ever lived without it and if it even gets close to running out of charge when I’m not near a charger or back up battery, I show visible signs of stress that are even worse than when my glass runs out of champagne.

I often boast about how I could probably leave the country with nothing more than my phone and passport and be completely fine – I can run my office, buy clothes, book a hotel room, send pictures and anything else that I might want to do on a trip or holiday, so long as I have WIFI. Even if I don’t, I can still read a wide number of books that are already downloaded.

However, it also means that I never get a moment’s peace, and my son has no excuses for not keeping in better touch with me!

Legal progress is also a bit of a balancing act.

For example, when I started out in law in the 1980s, everything was done manually and one of my jobs as a junior was the twice daily run to the courts to physically action matters, such as issuing proceedings and lodging bundles as well as seeing Masters and District Judges to obtain extensions of time and ask for guidance. Now it’s all done electronically, which in many respects is a massive benefit as everything is instant but can still lead to disputes.

Take the issuing of a winding up petition. In the old days I would have attended court, paid the fee, gone to companies court with my paperwork and receipt for the payment of the fee, and issued the petition. The precise date and time of the issue was never in dispute.  It was the moment that the clerk applied the stamp to the petition. Job done.

Now, however, we lodge the petition online, but if whoever is issuing it does not have a Payment By Account facility with the court (we do!), then the party issuing the petition has to call the court to pay the fee over the phone or by sending in a cheque (didn’t know those were still a thing!) as it can be hard to get through to the courts, the question has arisen as to what happens in between the lodging of the petition, and the payment of the fee. If, for example, the company were to dispose of assets in the intervening period, would they still be in breach of the Insolvency Act. Having said that, so few company directors appear to be aware that once a petition has been issued against their company they shouldn’t dispose of assets anyway, I don’t know whether it makes any difference, but it does demonstrate that the computerisation of the legal system is solving many problems, but still creating a few. It also demonstrates the benefit of being pro active – if you are going to issue a petition, don’t leave it until the last minute as a delay could be to the disadvantage of the creditors.

Whilst the obvious answer to this problem is to have a PBA account, this is only really suitable for people who are regularly dealing with HMCTs, and if a creditor is issuing a petition for themselves, rather than through solicitors, this might not be something they are aware they need until the last minute.

If you are looking to pursue a company through insolvency proceedings (or indeed any proceedings), and you decide to instruct solicitors, make sure you instruct a firm that have the right experience and facilities.

If you are being pursued and are at risk of a petition being issued, be aware that issuing doesn’t occur until the fee has been paid, and up until that point you still have the ability to take action, including, but not limited to applying for an order to prevent a petition being issued.  Even after that, there are still things you can do to try and avoid being wound up, such as an application to prevent the petition being issued.

Kleyman & Co Solicitors. The full-service law firm. Giving good advice for when you need to take the gloves off!