The law of corporate insolvency and liquidation is a notoriously confusing subject and one which is, regrettably, needed all too often in the aftermath of company failure. Within this complex area, Picarda’s text has established a well deserved reputation for clarity and depth and, consequently, this fourth edition provides a welcome and much needed update at a time when all aspects of company law are subject to fundamental revision. The relentless pace of change is evidenced by a glance at the preface and the impressive list of provisions and decisions incorporated into this new edition, in particular the Enterprise Act 2002 and the landmark decisions in Phillips vs Brewin Dolphin Bell Lawrie Ltd, Buchler vs Talbot and Re Spectrum plc.
As might be expected, the text is written in a style which is both forthright and informative. Picarda is to be commended on the clarity with which he presents such challenging material and this is sure to be appreciated by much of his readership. As with previous editions, the layout of chapters is straightforward and accessible, making for easy reference and the chapters are helpfully broken down under a series of practical headings which will be a great assistance, both to researchers and to the professional reader seeking quick guidance or reassurance on a point of law or procedure.
In terms of content, the text provides a wide ranging overview of all the key aspects of receivership and administration, including sections covering out of court receivers, court appointed receivers and administrators. In each section, there is a clear account of the appointment procedures, function and powers associated with the role and the result is guidance which is both informative and extremely easy to navigate, which is always welcome in a legal text. Similarly, although there is copious referencing, this does not (as with some texts) obscure or impede the central narrative and so leaves the reader able to extract the salient points without becoming unnecessarily mired in theory and background information. Once again, this is to be commended in a text of this nature.
In addressing the work of receivers and administrators, there is also much additional information, including a useful overview of the operation of fixed and floating charges and a valuable summary of the rights of employees when the company enters receivership. Particularly welcome addition is the final section covering international aspects of insolvency, which includes jurisdictional matters, the recognition of foreign receivers and administrators and procedures under both the UNCITRAL model and the Cross Border Insolvency Regulations 2006. This provides a logical development from the extensive consideration of the domestic provisions and indicates some recognition of the increasingly international dimension to company failure.
In summary, this is a worthwhile addition to any law library and will be of benefit to both students and practitioners alike. The only real weakness of this text is that its timing precludes a full incorporation of the provisions of the Companies Act 2006, however, this is a difficulty faced by all authors in the field, as the interminable implementation process continues. With the recent announcement that full implementation of the Act has been postponed from October 2008 to October 2009, there is little to suggest any imminent improvement in the situation. Consequently, this should not be taken as a criticism of the fourth edition of Picarda’s text but, instead, merely another reason to look forward to the next edition.
Chris Taylor
University of Bradford
International Journal of Law and Management
Vol 50, No 1, 2008