Bankruptcy restrictions undertaking (BRU) meaning

This glossary sets out numerous expressions regularly encountered in the restructuring & insolvency sphere. Words shown in bold within definitions are themselves explained in other entries in this glossary as well. A Article X The MLIJ contains a single provision named Article X, aimed at jurisdictions that have already implemented the MLCBI, like England, or are weighing its adoption. Article X states: ‘Not withstanding any prior interpretation to the contrary, the relief available under [insert a cross-reference to the legislation of this State enacting Article 21 of the UNCITRAL Model Law on Cross-Border Insolvency] includes recognition and enforcement of a judgment’ (see Practice Note: UNCITRAL model law on recognition and enforcement of insolvency-related judgments (MLIJ): Article X). Asset-backed security (ABS) A form of security anchored by asset pools, for example loans, leases, and credit card receivables. Assimilated law From 1 January 2024, ‘retained law’ has been retitled ‘assimilated law’. The body of domestic law originally arising from EU obligations, created by the European...

How can a director be disqualified? There are several routes by which a director can be disqualified, spanning various provisions of the Company Directors Disqualification Act 1986 (CDDA 1986) and the Insolvency Act 1986 (IA 1986). These include disqualification on bankruptcy and through a bankruptcy restrictions order (BRO) or a bankruptcy restrictions undertaking (BRU). For further guidance, refer to the following Practice Notes: Practice Note: How can a director be disqualified as a company director? Bankruptcy restrictions orders and undertakings—overview This Practice Note is not intended to cover every restriction arising from a BRO, BRU or bankruptcy. For full details, see the separate Practice Note: Effect and duration of bankruptcy restrictions orders (BROs). The scope here is limited to restrictions resulting from disqualification under CDDA 1986, section 6. It also excludes the restrictions under IA 1986, section 216 relating to prohibited names. For more on those provisions, see Practice Note: Prohibited names under section 216 of the Insolvency Act 1986...