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If you/I give a loan to a parent company can it be transferred to an operating company without your/my consent?
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Was there anything in the terms of the loan to prohibit this?Lawyer (solicitor) - retired from practice, now supervising solicitor in a university law clinic. I do not advise by private message.
Litigants in Person should download and read the Judiciary's handbook for litigants in person: https://www.judiciary.uk/wp-content/..._in_Person.pdf -
No. The lender (my mum) was a life partner who transferred the money to her life partner's parent company to assist with cash flow for a short period. She has been told by her now ex-life partner that the money was lost when his subsidiary companies went into administration shortly afterwards.Originally posted by atticus View Post
Another question also, What happens to the assets of a parent company if a subsidiary company goes into administration?Comment
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but if the loan was to the parent company, it remains responsible for repayment. Tell this man that.
If the parent company is not in administration, its directors remain in control.Lawyer (solicitor) - retired from practice, now supervising solicitor in a university law clinic. I do not advise by private message.
Litigants in Person should download and read the Judiciary's handbook for litigants in person: https://www.judiciary.uk/wp-content/..._in_Person.pdfComment
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If they have completed assignment of the loan from the parent to the subsidiary and provided Notice of Assignment from the parent company to the other party to the loan agreement, assuming there is no clause in the loan agreement preventing assignment without consent of both parties then the assignment to the subsidiary would be legal.
However, if no Notice of Assignment was sent to the other party to the loan agreement the parent company remains liable for it and the other party may enforce their rights of the agreement against the parent company.
If they wished to assign the loan agreement now they would have to create a new assignment agreement and send a Notice of Assignment based on it at the time of signing. A debt cannot be assigned to a company already in administration because no administrator would further burden a company with additional debt.
Their aim is to wind the company up by gaining as much as they can for the creditors or to find another party who can take on the business then service the debts, not to worsen the situation.COMPLETING AN N180 DIRECTIONS QUESTIONNAIRE (SMALL CLAIMS TRACK) GUIDE
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