Glossary
Scheme of Arrangement
A scheme of arrangement is an agreement with creditors in order that a company may restructure and have the chance to recover from its financial woes.
Secured Creditor
A secured creditors is a company or individual who is owed money, and has a fixed or floating charge against assets. In the event of insolvency, the secured creditors will rank higher in the pecking order than creditors with no security.
Shadow Director
A shadow director is a person who acts as a director of the company (i.e. influences how the company is operated), but has no legal title at Companies House.
Shareholder (Or Member)
The shareholders of the company are the owners of the shares in a company. They will appoint the directors to run the company and set the remuneration.
Small Firms Loan Guarantee Scheme (SFLGS)
The Small Firms Loan Guarantee (SFLG) is a loan where the lenders are provided with a government guarantee against default in certain circumstances.
Sole Trader
A sole trader is an individual who runs a business and is legally classified as self-employed. A sole trader business doesn’t have any legal identity separate to its owner.
Special Manager
A special manager is a person with either commercial and/or other skills appointed by the court to assist an insolvency practitioner to deal with an insolvent person’s property or business.
Statement of Affairs
A Statement of Affairs is a statement of assets and liabilities, which is filed at Companies House on Liquidation and Administration appointments.
Statutory Demand
A statutory demand is a written warning document presented to a debtor demanding that the monies due are paid otherwise court proceedings will be commenced.
Statutory Interest Rate
The statutory interest rate is the interest rate set by the Government has set. Currently at 8%.
Subrogation
Subrogation is the assumption by a third party of another party’s legal right to collect a debt or damages.
Subsidiary
A subsidiary is a company that is controlled by another company (referred to as the holding company).
Supervisor
The Insolvency Practitioner who is appointed on an Individual Voluntary Arrangement, A Partnership Voluntary Arrangement or a Company Voluntary Arrangement is referred to as The Supervisor of the Arrangement.
