Insolvency assistance outside the Model Law: Section 426 of the UK Insolvency Act 1986

Abstract

This article critically examines s426 Insolvency Act 1986 and its position in the UK’s Cross Border insolvency firmament. It traces the origins of s426 to a recommendation of the 1982 Cork Committee and notes that it replaced s122 Bankruptcy Act 1914 while giving the substantive provisions a more contemporary feel and modern gloss. The article notes limitations on the operation of s426 in that it only applies to cooperation between courts and then only courts in designated countries and territories. Nevertheless, s426 is potentially wider than the UK Uncitral Model Law implementation provisions. S426 enables the UK court to apply the provisions of foreign insolvency law in responding to a request from a foreign court. In the UK the Uncitral Model Law provisions have been construed as not having this effect.