s123

The balance sheet test for insolvency (section 123(2), Insolvency Act 1986), first addressed by the High Court in August 2010, has been revisited on appeal. The first instance conclusion that each case should be decided on its legal (rather than...

We all know the definition of insolvency for a company - or do we? The cashflow test - unable to pay its debts as they fall due - is relatively uncontroversial, but the balance sheet test is more difficult. Section...