The ruling confirmed that Section 423 of the Insolvency Act 1986 has extensive international reach, and does not require a transaction at an undervalue to leave the debtor with insufficient assets.
Background -
The...more
Ruling provides guidance on how close to insolvency a company needs to be before directors must consider creditors’ interests.
The UK Court of Appeal has ruled that the payment of a lawful dividend did not, on the facts,...more
4/3/2019
/ Appeals ,
Board of Directors ,
Breach of Duty ,
Creditors ,
Dividends ,
Parent Corporation ,
Shareholders ,
Subsidiaries ,
UK ,
UK Companies Acts ,
UK Insolvency Act
The court offers guidance on reversing lawful dividend payments and when directors need to take into account creditors’ interests.
On 6 February 2019, the UK Court of Appeal published a judgment in BTI v. Sequana that will...more
Ruling provides helpful reminder to directors, companies, and creditors that Section 423 of the Insolvency Act 1986 applies even outside of insolvency.
Background -
The UK Court of Appeal has upheld a decision that a...more
Section 423 of the Insolvency Act 1986 continues to be a useful tool available to creditors for challenging transactions at an undervalue.
Section 423 gives the English court the power to set aside a transaction (most...more