Bad judgment or bad faith? A cautionary tale for Nominees
Persons who act as nominees in Voluntary Arrangements have a duty to act in utmost good faith. Where the nominee’s conduct of the creditors’ meeting is in bad faith, such that the nominee’s conduct is deficient, leading to a material irregularity at or in relation to the creditors meeting, the nominee may, in appropriate cases, be personally liable to pay the legal costs of affected creditors.
Payment provisions: Key points to look out for
In this article, we wish to share some insights about what to look for when you consider payment provisions in any agreement that you or your business vehicle enters into. Payment provisions concern money and the impact of a payment provision that is not properly drafted can have a great impact (financial or otherwise) on a party to a contract.