This guide explains how limitation periods apply to corporate insolvency claims in the UK and why they are critical for preserving recoveries.
It outlines that different claims – such as fraudulent or wrongful trading, misfeasance, and transactions at an undervalue – have varying or sometimes no clear statutory time limits, especially following recent case law (e.g., Zedra), though courts may still refuse claims where there has been unfair delay. Limitation usually runs from when the cause of action arises, but may be postponed in cases of fraud or concealment, and special rules apply depending on whether the claim belonged to the company or is one which only an insolvency practitioner can bring. The guide also highlights practical steps insolvency practitioners can take to protect claims nearing expiry – such as standstill agreements or issuing protective proceedings – and stresses the importance of early identification, careful monitoring, and prompt action to avoid claims becoming time-barred.
