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 dividend payment by a subsidiary to its parent company may constitute a transaction at an undervalue within the meaning of Section 423 of the Insolvency Act 1986 (s. 423). The ruling brings welcome clarity about the wide remit of s. 423.
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