A Chinese court has frozen millions of dollars in assets belonging to tech conglomerate LeEco, dealing another blow to the group as it struggles to stay afloat, according to a global media report Wednesday.
The assets were frozen because of missed interest payments on a loan taken out by LeEco’s mobile phone subsidiary, the company added.
An order issued by the court backed up a request by China Merchants Bank to freeze Rmb1.24 billion ($180 million) of assets from three LeEco subsidiaries as well as the personal assets of LeEco founder Jia Yueting and his wife Gan Wei, LeEco confirmed.
LeEco’s founder once painted his company as rivalling western tech groups such as Tesla. Since its founding in 2004, the company has moved away from its core streaming business to sectors as varied as electric vehicles and mobile phones.
Last November, Mr Jia acknowledged in an open letter that the rapid expansion had left the company vulnerable, burning cash at an unsustainable rate.
Freezing assets is often a precursor to bankruptcy proceedings, and the court order might trigger a cascade of similar requests from other LeEco creditors. Chinese law mandates that creditors seeking claims against assets must file in the jurisdiction where the assets are. This often leads to a pile-on of claims in the same courts in the same market in which the company holds its most valuable assets.
Lenders’ claims are also considered in the order in which they were filed, putting pressure on creditors to file ahead of other institutions, say analysts.
Four professional services firms in south Wales have made major changes to their teams by promoting some of their best staff to the level of partners or directors.
The four firms include two law practices, one corporate finance business and one business advisory firm.
These latest promotions reflect the continuing search for quality among some of Wales’ top performing professional services businesses.
Deloitte
L-R: Karen Griffin, Sam Hart, Shaun Curtis, Wayne Harvey, David Rozier, Laurence Hedditch, Delyth Jones (Photo: Deloitte)
Business advisory firm Deloitte has strengthened its senior leadership team in Cardiff by promoting two of its people to director.
Shaun Curtis in tax and David Rozier in audit and assurance are the newly promoted directors.
Mr Curtis is a senior member of the Cardiff tax practice and focuses on advising privately owned businesses across the region, supporting entrepreneurs on a range of tax matters and helping them to recognise the unique opportunities in Wales. He was promoted to senior manager in 2014.
As a director, and alongside senior partner for Wales alongside Wayne Harvey, he will lead the Deloitte private tax team in Cardiff which consists of 25 tax professionals.
He joined Deloitte’s tax practice in 2007 after graduating from Cardiff University with a degree in accounting.
He grew up in Pembrokeshire where his family runs a fishing business, but always knew he wanted to work in the world of finance and help businesses grow.
Over the last 10 years, Mr Curtis has worked with a large number of different private businesses and high net wealth individuals, helping them address the challenges they face, especially ones related to enterprise taxes and trusts.
As a tax associate in 2008 he gained a distinction from the Association of Tax Technicians in his exams, an award given to candidates that achieve an exceptional level of performance.
In 2016 he was named one of eprivateclient’s top 35 under 35 private client practitioners. Its yearly list recognises the rising stars of private client professions across the UK.
Opening of Deloitte’s office at Park Street, Cardiff
David Rozier is a senior member of the financial services team in Cardiff with 11 years’ experience in this sector, specialising in retail banking. He has been auditing some of the largest financial services companies in south Wales, seeing them grow, deal with the credit crisis and respond to different business challenges over the years.
In his new role, Mr Rozier forms part of the leadership group that heads up Deloitte’s south region financial services practice, a team of 70 people based in the southern half of the UK including Wales.
He is originally from south Llantrisant and joined Deloitte’s audit practice in Cardiff in 2006 after gaining a degree in maths from Nottingham University.
He moved back to south Wales after graduating and now lives in Dinas Powys outside Cardiff. He was promoted to senior manager in 2013.
During his career at Deloitte Mr Rozier has been on secondment to many banks and building societies in a range of roles, the shortest for a period of three months and the longest lasting two years.
The opportunities to work inside different financial institutions, as well as being an auditor in this sector, have given him a strong insight into the financial services industry and its people and has underpinned his career trajectory.
In 2011 he was a finalist in the British Accountancy Awards in their ‘new accountant of the year’ category. In 2015 he was named in Wales Online’s 35 under 35 highest flying young businessmen in Wales, and also made it onto their list of the 25 most stylish men and women in the Welsh business world.
Senior partner in Wales for Deloitte Wayne Harvey
Deloitte employs more than 700 people in Cardiff at its offices in Callaghan Square, Park Street and Fusion Point, including 11 directors and seven partners.
Wayne Harvey, senior partner for Deloitte in Wales, said: “I’m delighted to be announcing these promotions as they are a clear example of how we are investing in Wales. As directors, they are now part of the leadership of our firm in Wales.
“It is testament to the quality of the people we have in our business and of the valuable work they are doing with our clients. They have both built up extensive knowledge in their specialist areas and I’m sure they’ll continue to be successful in serving our clients and leading their teams.
“There are few things more important to the success of our business than attracting, developing and retaining high quality people.”
Harding Evans
Ben Jenkins and Siobhan Downes, new partners at HardingEvans (Photo: Harding Evans)
Newport-based law firm HardingEvans has announced the promotion of two of its solicitors to partner positions.
Siobhan Downes, 32, has been promoted to partner in the care team, and 33-year-old Ben Jenkins has been promoted to partner in the dispute resolution team.
Ms Downes, from Newport, joined HardingEvans 10 years ago after studying for her LLB at the University of Wales in Swansea.
She specialises in complex children and family matters involving disputes both between private individuals and also where there is involvement of local authority social services. She has extensive experience in domestic violence and harassment matters and also applications for injunctions.
She said: “I was focused on becoming a solicitor from a young age, and since joining Harding Evans I have specialised in family law with a particular focus on children matters.
“My specialist knowledge has allowed me to gain accreditations such as becoming a member of the Law Society Children’s Panel.
“Thanks to HardingEvans Pathway to Partnership programme I have in more recent times been given the opportunity to develop my management knowledge and skills, which has resulted in my promotion to partner. I am very much looking forward to contributing to the wider business in the future.”
Born in Singapore to British parents, Ben Jenkins attended schools around Hampshire and boarding school in Wiltshire before studying for his LPC at Cardiff University in 2005.
Specialising in civil and commercial litigation, commercial contracts, advocacy at court and mediation, he has acted for a wide variety of clients including a plc, foreign companies, professional sports clubs and professional athletes.
He said: “Since joining Harding Evans 10 years ago, I have extensively developed my skills as a solicitor and had the opportunity to deal with a vast range of legal clients across my department.
“I am very excited about the new opportunities that being partner at Harding Evans will bring, including playing a key role in the future growth and development of the firm.”
Joy Phillips, practice director at HardingEvans, added: “Developing and retaining staff is one of our top priorities and this is reflected in our desire to promote from within, ensuring that the investment we make in our staff reaps dividends in the future.
“Siobhan and Ben have both shown commitment and dedication to the firm and our clients, they have both progressed through our Pathway to Partnership programme which is key to supporting our retention and development of young talent.
“They have both played an important part in our past success and I believe they will be vital to our future growth plans”.
J A Hughes
Lucas Edwards, new partner at Quality Solicitor J A Hughes (Photo: Newgate Communications)
Specialist criminal lawyer Lucas Edwards has become a partner in law firm Quality Solicitors J A Hughes which has offices in Barry, Penarth and Cardiff and was originally established in 1888.
He joined the firm in January 2016 as an assistant solicitor where he specialised in all areas of criminal law. He recently represented a defendant in a high profile local murder case.
Mr Edwards started his career in 2012, working in two of the largest high street law firms in Wales after graduating with a law degree from Swansea University.
While there he gained a passion for criminal law and criminal defence. He started his training contract with Lloyd & Rowe Solicitors, qualifying as a solicitor in April 2015, and has rapidly developed an extensive client base and a reputation for his high quality criminal defence work.
He said: “I’m very happy to have been promoted to be partner in this forward looking, yet long established firm. I enjoy working within criminal law as every day is different and you never know what issues, whether big or small, will arise.
“One minute I can be in the office preparing a submission which will enable someone to keep their driving licence and the next I get a call to go to the police station to represent someone arrested for a serious assault or even murder, though happily those cases are rare.
“I look forward to the opportunities ahead and to being able to continue to provide a high quality service to our clients.”
Tim Hackett, head of the criminal and care departments at QS J A Hughes, said: “We’re delighted that Lucas has accepted our offer to become a partner.
“He is a very talented and passionate individual and we know he is able to deliver an excellent service to the people of Cardiff and the Vale of Glamorgan. His enthusiasm and expertise will be put to good use in his new position.”
Grant Thornton
Grant Thornton has boosted its corporate finance offering with the appointment of Trefor Griffith as partner for the South West and Wales.
Mr Griffith will lead Grant Thornton’s corporate finance advisory team for the region. He leads the consumer industry group for the firm nationally, having been based in Grant Thornton’s London office since 2009 with a focus on the food and beverage sector, where he has led deals across the UK.
Mr Griffith has led a number of notable deals in the south west region over the last few years, including the investment in BVG Airflo by BGF, the acquisition of Thompson and Morgan by BVG, the sale of AerFin to Carval and the recent sale of Westbridge Food Group to CP Foods.
Tim Lincoln, practice leader at Grant Thornton South West, said: “Trefor brings with him strong experience from both a national perspective and regionally that will prove invaluable to us and our clients. He will be a real asset to our team and I’m confident that he will help to further bolster our presence in the regions.”
Mr Griffith added: “I am delighted to be able to join a young dynamic team covering the south west and Wales, working with them to continue to grow our business in the region.
“Our focus on advising dynamic organisations is a perfect fit with a significant number of businesses in the region and I am looking forward to working with more of them in the coming months and years.”
Kenya’s leading supermarket, Nakumatt, is staring at possible shutdown
By Margaret Kalekye/Release
Kenya’s commercial law experts want top leaders of troubled companies to consider re-organisations that could include standstill arrangements and debt conversion into equity, to help them stay afloat in a tough business environment.
More than 10 publicly traded companies have already issued profit warnings in the last one year including the self-listed NSE, highlighting a tough business environment that risks pushing most companies into liquidation.
MMC Africa Law Corporate Commercial Law expert, Bernard Musyoka said players in the financial, agricultural, manufacturing and fast moving consumer goods sectors are the hardest hit with a huge reduction in profits as recorded in their balance sheets published recently.
“Most businesses are sinking deeper into debt and face a risk of imminent shop closure every day. This is unless a working turn-around strategy can be implemented immediately. Nakumatt, Uchumi and Kenya Airways fall into this category, and are currently rolling out measures aimed at driving them back to profitability” said Musyoka.
Lifestyle clothing retailer Deacons East Africa, underwriter Sanlam Kenya, Sameer Africa, Sasini, Family Bank, CIC Insurance, Williamson Tea, Unga Group Limited, Shelter Afrique, Limuru Tea are among the listed companies that have already issued profit warnings in the last one year.
Listed companies are required by law to issue profit warnings if their profit for the current year is going to be least 25 per cent lower than the profit for the previous year.
Private companies have not been spared either. Giant retail outlet, Nakumatt, is currently struggling to stay afloat amid claims of unpaid rent, salaries and suppliers.
Mr. Musyoka warned that these companies risk falling in the jaws of creditors who often result into using harsh methods that lead into liquidation and push shareholders into losses and the employees into unemployment.
“This is because such liquidation will not be straight forward, it will likely face resistance from the companies and it will take time for all the creditors to agree how to share the pie,” argued Musyoka.
The expert has advised creditors of companies facing turbulent times to consider deployment of administration – a corporate insolvency procedure by which a company can be re-organized or have its assets realized for the benefit of its creditors.
Administration allows for the re-organisation of a company or the realization of its assets under the protection of a statutory moratorium, which prevents creditors from taking action to enforce their claims against the company during the administration process and so hamper the implementation of a strategy for the company’s rescue or asset realization.
SCOTLAND may have its own legal system, but there is something to be said from learning from your neighbours.
At least that is the opinion of Boyd Legal managing director Peter Boyd, who said his thinking on how to drive the firm forward is influenced by “constantly looking at what they are doing in England”.
Having set up as a conveyancing and estate agency practice 12 years ago, the Edinburgh-based firm had to change direction after the financial crash of 2008, when total exposure to the precarious property market was posing a threat to the firm’s future.
Since then it has expanded into areas such as private client, commercial and lettings, with the acquisition of other law firms’ wills books also seeing it expand its footprint into Fife.
“We didn’t have a substantial wills business but we bought a few databases from lawyers who were retiring then 14 months ago bought Kirkcaldy firm Gibson Spears Dow & Son,” Mr Boyd said. “It’s got a solid longstanding wills database.”
It is in the way that he wants Boyd Legal to be run, though, that Mr Boyd is seeking inspiration from some of the firm’s English counterparts, with Boyd Legal keen to operate less as a traditional law firm partnership and more as management-led business.
“The old way of running legal partnerships doesn’t really engender good management or strategic management as it would in a normal business,” Mr Boyd said.
“We’ve chosen to take it away from being partner-run and have taken on people who are good on the management side. We’ve got a very experienced finance director and business development director.”
While the intention is for those staff members to be given partnership status within the firm, this is not currently possible because the regulations governing the profession in Scotland do not allow non-lawyers to have ownership stakes in law firms.
With the Scottish Government currently working on a new regulatory framework that should see so-called alternative business structures (ABS) introduced in the near future, Mr Boyd said that “ABS is something we would obviously use”.
Although ABS have been a feature of the profession in England and Wales for several years, Mr Boyd said this does not necessarily mean the Scottish profession has been at a disadvantage by not being able to use them. This is particularly so given the high-profile issues faced by firms such as private equity backed Parabis, which ultimately collapsed, and Australian-listed Slater and Gordon, which has been taken over by its lenders after struggling to service its debt.
“We’re sitting on the touchlines and looking at what’s going on in England and seeing the dramatic demise of some ABSs down south and the amount of debt that those companies built up,” Mr Boyd said.
“Maybe we’ve avoided the worst of the excesses while watching what’s going on down there.”
Like many of the English ABS firms, though, Boyd Legal is keen to get into the volume market, with finance director Gerry Cockburn and non-executive consultant Stephen Gold helping to steer the change.
Having sold his firm Golds Solicitors to English insurance heavyweight Irwin Mitchell a decade ago, Mr Gold is well versed in how the high-volume commoditised segment of the market works while Mr Cockburn’s experience includes an eight-year stint at volume business Optima Legal.
“With their experience we’ve got the ability to move the firm forward in a different direction and we’re looking at options for high-volume conveyancing work for introducers such as estate agents or mortgage brokers,” Mr Boyd said.
“It’s almost like setting up a new business and we are speaking to firms down south to see what advances they have made that could be helpful to us.
“We’re going down to see a legal firm in Liverpool that does elements of some of the work we do. Their systems are brilliant. They are two or three years ahead of where we want to be.”
This is vital, Mr Boyd said, because technology will be “absolutely fundamental” to the way the firm repositions itself.
“We took on quite sophisticated legal software and have invested in expanding that,” he said.
“If you look at how other businesses are structured, they have a lot of software developers.
“That’s something we’re going to have to do because legal software has its limitations, particularly at the front end.”
Carey Olsen has been named Offshore Law Firm of the Year at The Lawyer Awards 2017.
The event in London on June 27 brought together more than 1,300 private practice lawyers and senior corporate counsel to celebrate best practice in the legal industry.
Carey Olsen faced competition from seven offshore law firms to win the award, which recognizes the firm’s legal excellence, depth and breadth of expertise, commercial strength, market share, innovation and market-leading strategy.
Carey Olsen is one of the largest law firms in the Channel Islands, with a network of eight international offices.
After the firm’s expansion in the British Virgin Islands and the Cayman Islands, Carey Olsen opened a Hong Kong office in November 2016, less than a year after launching its Singapore office.
Some of the firm’s high-profile assignments last year include advising SoftBank Group Corp. on the establishment of one of the world’s largest technology investment funds, the US$100 billion SoftBank Vision Fund LP; advising Liberty Media on its US$8 billion acquisition of Formula One Group from CVC Capital partners; advising Northern Trust on the launch of its blockchain financial product in Guernsey, which has been described as a “world first”; acting for Bank of America, alongside two other creditors, in seeking the liquidation of companies forming a key part of China Fishery Group; and acting for Hugh Dickson and Paul McCann of Grant Thornton in their capacity as Joint Official Liquidators of Weavering Macro Fixed Income Fund Ltd. in proceedings in the Grand Court of the Cayman Islands against the Fund’s former auditors, Ernst & Young (Cayman and Ireland). The proceedings commenced in 2012 and settled in late 2016.
Carey Olsen managing partner, Alex Ohlsson, said: “It has been another very strong year for the firm. We have seen significant growth and received a number of high-value and complex instructions.
“It is an honor for us to be recognized as ‘Offshore Law Firm of the Year’ by The Lawyer.”
Mumbai: A Mumbai magistrate’s court on Tuesday admitted a Rs500 crore criminal defamation suit, filed by R. Venkataramanan, a trustee at Tata Trusts, against ousted Tata Sons Ltd chairman Cyrus Mistry and his family investment firms.
Mistry and the firms—Cyrus Investments Pvt. Ltd and Sterling Investments Pvt. Ltd—will have to face trial on charges of criminal defamation under sections 499, 500 and 501 of the Indian Penal Code and appear before the court on 24 August.
More From Livemint »
Venkataramanan filed the defamation complaint in his personal capacity on 7 June through the law firm MZM Legal, citing allegations that Mistry made against him in an email he wrote to Tata Sons directors and Tata Trusts trustees on 25 October. The allegations pertained to some transactions at AirAsia India, Tata Sons’ joint venture with AirAsia Bhd.
Mistry was sacked by Tata Sons in a boardroom coup on 24 October, following which he wrote the email that contained the allegations against Venkataramanan and others at Tata Sons, the Tata group holding company, and Tata Trusts.
According to Venkataramanan’s complaint, the email, which found its way to the media, caused “irreparable” damage to his reputation among colleagues, family, friends and society. The complaint said Mistry had also made “false, malicious and derogatory” allegations against Venkataramanan in filings with the company law tribunal in Mumbai.
In his petition, Venkataramanan pleaded that Mistry, Cyrus Investments and Sterling Investments be directed to cease and desist from circulating and/or publishing any defamatory, derogatory, malicious comments or statements, articles and posts through any medium either directly or indirectly against him.
He also demanded that Mistry and his firms be directed to immediately withdraw the statements and posts published till date.
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“It’s the first step in the litigation and it may go on for several months,” said Ramesh K. Vaidyanathan, partner at Advaya Legal, a law firm. “One can’t commit on the merits of the suit just as yet,” he said.
Following his removal, Mistry and his family firms challenged his ouster at the National Company Law Tribunal (NCLT).
On 17 April, NCLT dismissed the main petition filed by Mistry and his family firms alleging mismanagement and oppression of minority shareholders. The two-member bench also refused to grant him a waiver from the minimum shareholding requirement for filing such a petition.
Subsequently, the Mistry family firms moved the National Company Law Appellate Tribunal (NCLAT) against NCLT’s decision.
“The move by the Tata Trustees to attempt to muzzle and interfere with legal proceedings faced by them, now before the NCLAT, will be effectively and appropriately dealt with,” the office of Cyrus Mistry said in a statement. “We believe in the nation’s legal system and know such subversion of justice systems will meet its fate.”
Mumbai: A Mumbai magistrate’s court on Tuesday admitted a Rs500 crore criminal defamation suit, filed by R. Venkataramanan, a trustee at Tata Trusts, against ousted Tata Sons Ltd chairman Cyrus Mistry and his family investment firms.
Mistry and the firms—Cyrus Investments Pvt. Ltd and Sterling Investments Pvt. Ltd—will have to face trial on charges of criminal defamation under sections 499, 500 and 501 of the Indian Penal Code and appear before the court on 24 August.
More From Livemint »
Venkataramanan filed the defamation complaint in his personal capacity on 7 June through the law firm MZM Legal, citing allegations that Mistry made against him in an email he wrote to Tata Sons directors and Tata Trusts trustees on 25 October. The allegations pertained to some transactions at AirAsia India, Tata Sons’ joint venture with AirAsia Bhd.
Mistry was sacked by Tata Sons in a boardroom coup on 24 October, following which he wrote the email that contained the allegations against Venkataramanan and others at Tata Sons, the Tata group holding company, and Tata Trusts.
According to Venkataramanan’s complaint, the email, which found its way to the media, caused “irreparable” damage to his reputation among colleagues, family, friends and society. The complaint said Mistry had also made “false, malicious and derogatory” allegations against Venkataramanan in filings with the company law tribunal in Mumbai.
In his petition, Venkataramanan pleaded that Mistry, Cyrus Investments and Sterling Investments be directed to cease and desist from circulating and/or publishing any defamatory, derogatory, malicious comments or statements, articles and posts through any medium either directly or indirectly against him.
He also demanded that Mistry and his firms be directed to immediately withdraw the statements and posts published till date.
Subscribe to Our Newsletter »
“It’s the first step in the litigation and it may go on for several months,” said Ramesh K. Vaidyanathan, partner at Advaya Legal, a law firm. “One can’t commit on the merits of the suit just as yet,” he said.
Following his removal, Mistry and his family firms challenged his ouster at the National Company Law Tribunal (NCLT).
On 17 April, NCLT dismissed the main petition filed by Mistry and his family firms alleging mismanagement and oppression of minority shareholders. The two-member bench also refused to grant him a waiver from the minimum shareholding requirement for filing such a petition.
Subsequently, the Mistry family firms moved the National Company Law Appellate Tribunal (NCLAT) against NCLT’s decision.
“The move by the Tata Trustees to attempt to muzzle and interfere with legal proceedings faced by them, now before the NCLAT, will be effectively and appropriately dealt with,” the office of Cyrus Mistry said in a statement. “We believe in the nation’s legal system and know such subversion of justice systems will meet its fate.”
Mumbai: A Mumbai magistrate’s court on Tuesday admitted a Rs500 crore criminal defamation suit, filed by R. Venkataramanan, a trustee at Tata Trusts, against ousted Tata Sons Ltd chairman Cyrus Mistry and his family investment firms.
Mistry and the firms—Cyrus Investments Pvt. Ltd and Sterling Investments Pvt. Ltd—will have to face trial on charges of criminal defamation under sections 499, 500 and 501 of the Indian Penal Code and appear before the court on 24 August.
More From Livemint »
Venkataramanan filed the defamation complaint in his personal capacity on 7 June through the law firm MZM Legal, citing allegations that Mistry made against him in an email he wrote to Tata Sons directors and Tata Trusts trustees on 25 October. The allegations pertained to some transactions at AirAsia India, Tata Sons’ joint venture with AirAsia Bhd.
Mistry was sacked by Tata Sons in a boardroom coup on 24 October, following which he wrote the email that contained the allegations against Venkataramanan and others at Tata Sons, the Tata group holding company, and Tata Trusts.
According to Venkataramanan’s complaint, the email, which found its way to the media, caused “irreparable” damage to his reputation among colleagues, family, friends and society. The complaint said Mistry had also made “false, malicious and derogatory” allegations against Venkataramanan in filings with the company law tribunal in Mumbai.
In his petition, Venkataramanan pleaded that Mistry, Cyrus Investments and Sterling Investments be directed to cease and desist from circulating and/or publishing any defamatory, derogatory, malicious comments or statements, articles and posts through any medium either directly or indirectly against him.
He also demanded that Mistry and his firms be directed to immediately withdraw the statements and posts published till date.
Subscribe to Our Newsletter »
“It’s the first step in the litigation and it may go on for several months,” said Ramesh K. Vaidyanathan, partner at Advaya Legal, a law firm. “One can’t commit on the merits of the suit just as yet,” he said.
Following his removal, Mistry and his family firms challenged his ouster at the National Company Law Tribunal (NCLT).
On 17 April, NCLT dismissed the main petition filed by Mistry and his family firms alleging mismanagement and oppression of minority shareholders. The two-member bench also refused to grant him a waiver from the minimum shareholding requirement for filing such a petition.
Subsequently, the Mistry family firms moved the National Company Law Appellate Tribunal (NCLAT) against NCLT’s decision.
“The move by the Tata Trustees to attempt to muzzle and interfere with legal proceedings faced by them, now before the NCLAT, will be effectively and appropriately dealt with,” the office of Cyrus Mistry said in a statement. “We believe in the nation’s legal system and know such subversion of justice systems will meet its fate.”
After making the insolvency process easier for companies, the focus is now turning to proprietary firms.
The NITI Aayog will have a meeting, in this regard, with the Insolvency and Bankruptcy Board (IBB), the ministry of small and medium enterprises and insolvency professionals on Wednesday.
An official said, “NITI Aayog wants to expedite this process as the current provisions only allow companies and limited liability partnerships to file for insolvency.”
IBB plans to notify the bankruptcy provisions in the Insolvency and Bankruptcy Code (IBC).
At least 90 per cent of small firms are proprietary firms, said insolvency professionals. Once the bankruptcy provisions are notified, these proprietary firms will benefit, as IBB plans to consider them as individuals.
The IBB plans to notify the bankruptcy code in three phases. The first will be of corporate guarantors. In the second phase, an individual with proprietary business will be included and in the last phase, the insolvency regulator will frame rules for individuals.
A bankruptcy law will help individuals who now have to go to district courts for the process, which is tedious and time consuming. Insolvency professionals state that filing bankruptcy takes many months.
Recently, the government notified fast-track resolution process for start-ups, bringing down the resolution time to
90 days, from 180 days.
So far, the IBB has notified the sections pertaining to cross-border insolvency.
However, the rules haven’t been framed yet. The government is consulting the industry for recommendations on what the rules should be.
When Monica Goyal went to the University of Toronto’s law school 10 years ago, she did not learn much about technology or entrepreneurship.
“I wouldn’t say that they avoided discussing digital trends,” she tells NOW. “Their focus is to teach law students the law and meet their regulatory obligations.”
But the lack of legal tech in law schools stuck with Goyal. She had earlier graduated from the University of Waterloo’s electrical engineering program and that experience, combined with her law degree, got her brain buzzing.
Now an adjunct professor at Osgoode Hall Law School at York University, she’s blended her passion for startup tech with her knowledge of the legal profession. Not only has she founded a course tackling information communication in law – Legal Information Technology – she also launched the platform My Legal Briefcase.
The six-year-old startup helps small-business owners headed to the Ontario Small Claims Court (OSCC) get their papers in order for an application, while also saving time and money.
Users fill out an online questionnaire about their claim and a proprietary program uses the answers to fill in forms to be submitted to the OSCC, which can then be printed out and filed.
“My hope is and was to use technology to deliver legal solutions to people in a different way,” says Goyal, adding that legal fees for small claims matters can range from $2,500 and up.
My Legal Briefcase is being noticed worldwide: she was among 10 women who made the ABA Legal Technology Resource Center’s annual global list of Women of Legal Tech list this year.
Goyal isn’t the only Ontario law prof trying to get the white-collar profession to embrace technology.
Ben Alarie, a law professor and Osler Chair in Business Law at the University of Toronto, was bitten by the entrepreneurial bug in 2015 when he and several colleagues launched Blue J Legal, an online B2B service that brings artificial intelligence to tax law.
The company’s main product is Tax Foresight, which predicts how a court will decide a case. The client answers a series of questions and the program runs a simulation of past tax-law decisions.
Popular queries include taxes around buying and selling condos, tax issues related to home-office classification and determining whether a worker is an independent or dependent contractor.
The idea is to simplify complex Canadian tax law. “It can be complicated on just an individual basis,” says Alarie. “So imagine how corporations might be dealing with difficult tax issues.”
Unlike My Legal Briefcase, Tax Foresight is for lawyers and accountants, as opposed to lay people, so the main benefit is maximizing efficiency.
Neither Tax Foresight nor My Legal Briefcase offer any real-time legal advice from professionals. As such, Goyal and Alarie both say they have received zero resistance from legal regulators in Canada.
It’s been a different story south of the border. Last year, the American Bar Association reversed a decision to support legal advice app Rocket Lawyer amidst a backlash from local bar associations and members weary of the “Uberization” of their profession.
“In fact, [regulators] seem to really understand that ours is a research tool targeted at helping professionals,” says Alarie.
Similar to Goyal, he has pushed technology at the law school level as the coleader of U of T’s Looking Ahead: The Blurred Lines of Technology, Body, and Mind, a course that “surveys the implications of emerging socially and economically transformative technologies.”
He notes that “lawyers are conservative as a lot,” but attitudes will change as they become more familiar with online services and demand them more often.
Fred Headon, the past president of the Canadian Bar Association and part of CBA’s Chair of Legal Futures Initiative, says progress in legal tech is coming slowly to law schools across Canada. He cites the courses lead by Goyal and Alarie, but also the University of Montreal’s unique Cyberjustice lab.
“A growing number of professors and deans are bringing the technologies now available into the classroom,” Headon says.
When schools and firms embrace new platforms, that adoption trickles down to clients – and their wallets.
“If technology can address the time-consuming processes lawyers deal with regularly – even if it’s software that can catch errors quickly – then that helps save lawyers time and thus saves clients money,” says Headon.
