- Centrebind procedure
Named after a reported legal case where it was held that a legal device to put a company into liquidation more than one day before the creditors' meeting (in apparent breach of the then law), in order to try to prevent a creditor from exercising a right of distraint over company assets, was valid. The loophole was subsequently abused in other instances and the law was revamped in the Insolvency Act 1986. The procedure of appointing a liquidator up to 14 days before the day of the creditors' meeting, now enshrined in statute, is still often referred to as "Centrebinding".Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.