Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Liabilities definition

What does Liabilities mean? In practice, a scheme’s liabilities are what it owes: the future benefit payments (for example, pensions and lump sums) and the scheme’s expenses. They are usually measured as the present value of expected cashflows, determined by an actuary using assumptions on discount rate, longevity, inflation and expenses. Comparing liabilities with the market value of assets gives the funding level: a deficit arises where liabilities exceed assets; a surplus where assets exceed liabilities. “Liabilities” is a descriptive term used across legal, actuarial and accounting contexts rather than a single statutory definition. However, valuation bases are prescribed for particular purposes. In...

Asset Stripping and Phoenixing: Restrictions on Re-use of Company Names, Civil Freezing Remedies, Tort Claims, Criminal Offences, and Investigatory/Prosecuting Authorities

Published by a LexisNexis Corporate Crime expert

Practice notes

What is asset stripping?

Asset stripping is the contentious practice of buying a company and intentionally running down its assets for personal advantage or to boost short-term returns. One form of asset stripping is ‘phoenixing’, where directors wind up or walk away from a company to sidestep creditor liabilities and then carry on the same business through a new or connected entity.

Phoenixing

The establishment of a phoenix company is a variant of asset stripping. A phoenix company arises when the business of an insolvent company is transferred to a new company, leaving the debts and liabilities with the insolvent entity. Phoenix companies typically operate in the same line of trade as the former (now insolvent) company, have the same or largely the same directors as the predecessor, and in some instances use a similar name to it.

Re-use of the company name

Under section 216 of the Insolvency Act 1986 (IA 1986), phoenix companies are prohibited from re-using the predecessor company’s registered name and trading name unless certain exceptions apply...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Amelia Clegg

Edmonds Marshall McMahon

Amelia joined Edmonds Marshall McMahon in January 2024 as a Senior Associate. She is a dual qualified English barrister and New York attorney.Amelia completed her pupillage and took tenancy at a highly ranked barristers’ chambers. At the independent bar, Amelia practised predominantly in all areas of criminal law, appearing in the Crown and Magistrates’ Courts.Having been admitted to the New York Bar, Amelia spent three years working as a litigation association at an AM100 law firm in New York City, where she gained a wide range of experience in state and federal litigation, with a particular emphasis on commercial litigation and white collar criminal litigation. Her US work included acting as defence counsel in a high profile commercial bribery case and representing a large regulatory sports body with respect to cases brought by former athletes for alleged concussions sustained while playing...

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...