Insolvency & Restructuring

March 2020

Pre-emptive rights relating to the insolvency of a partner

In the event of the insolvency of one partner, the partnership agreements of many limited liability companies grant the other partners a pre-emptive right to purchase the insolvent partner's share in the business.

Avoidance claims under the Insolvency Act are assignable!

In a highly anticipated decision, the Supreme Court (in case 17 Ob 6719k) examined for the first time the admissibility of an assignment of insolvency avoidance claims – and it ruled that avoidance claims can be assigned! In making this landmark ruling, which paves the way forward but is no less surprising, the Supreme Court has provided clarity where there previously was none.