Principles of Corporate Insolvency Law explained

Goode on Principles of Corporate Insolvency Law by Sir Roy Goode of the University of Oxford is a leading textbook on UK insolvency law. Since its 5th edition, it has been edited by Professor Kristin van Zwieten, the Clifford Chance Professor of Law and Finance at the University of Oxford.^[1]

Outline of principles

Professor Goode's suggested ten principles of corporate insolvency law are as follows.^[2]

corporate insolvency law recognises rights accrued under the general law prior to liquidation
only the assets of the debtor company are available for its creditors
security interests and other real rights created prior to the insolvency proceeding are unaffected by the winding up
the liquidator takes the assets subject to all limitations and defences
the pursuit of personal rights against the company is converted into a right to prove for a dividend in the liquidation
on liquidation the company ceases to be the beneficial owner of its assets
no creditor has any interest in specie in the company's assets or realisations
liquidations accelerates creditors' rights to payment
unsecured creditors rank pari passu
members of a company are not as such liable for its debts

R Goode, Principles of Corporate Insolvency Law (3rd edn Thomson, London 2005)
V Finch, Corporate Insolvency Law: Perspectives and Principles (2009)
A Keay and P Walton, Insolvency Law: Corporate and Personal (2nd edn Jordans, London 2008)