Compulsory Liquidation in UK Law

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Leading Cases
  • Re Gray's Inn Construction Company Ltd
    • Court of Appeal (Civil Division)
    • 05 December 1979

    In considering whether to make a validating order the court must always, in my opinion, do its best to ensure that the interests of the unsecured creditors will not be prejudiced. The desirability of the company being enabled to carry on its business generally is likely to be more speculative and will be likely to depend on whether a sale of the business as a going concern will probably be more beneficial than a break-up realisation of the company's assets.

    Since the policy of the law is to procure so far as practicable rateable payments of the unsecured creditors' claims, it is, in my opinion, clear that the court should not validate any transaction or series of transactions which might result in one or more pre-liquidation creditors being paid in full at the expense of other creditors, who will only receive a dividend, in the absence of special circumstances making such a course desirable in the interests of the unsecured creditors as a body.

    But we have been referred to no casein which the court has validated payment in full of an unsecured pre-liquidation debt where there was no such special circumstance, and in my opinion it would not normally be right to do so, because such a payment would prefer the creditor whose debt is paid over the other creditors of equal degree.

  • Roberts Petroleum Ltd v Bernard Kenny Ltd
    • House of Lords
    • 10 February 1983

  • AMP Enterprises Ltd v Hoffman
    • Chancery Division
    • 25 July 2002

    On the one hand the court expects any liquidator, whether in a compulsory winding up or a voluntary winding up, to be efficient and vigorous and unbiased in his conduct of the liquidation, and it should have no hesitation in removing a liquidator if satisfied that he has failed to live up to those standards at least unless it can be reasonably confident that he will live up to those requirements in the future.

  • Ayerst v C. & K. (Construction) Ltd
    • House of Lords
    • 21 May 1975

    The "legal ownership" of the trust property is in the trustee, but he holds it not for his own benefit but for the benefit of the cestui que trustent or beneficiaries. Upon the creation of a trust in the strict sense as it was developed by equity the full ownership in the trust property was split into two constituent elements, which became vested in different persons: the "legal ownership" in the trustee, what came to be called the "beneficial ownership" in the cestui que trust.

  • Re R Williams Leisure Plc
    • Court of Appeal (Civil Division)
    • 27 April 1994

    In a disqualification application, hearsay evidence untested by cross-examination of the informant may be insufficient to satisfy the burden of proof against opposing evidence. It will depend upon the facts and probabilities of each case. But that is no reason why their hearsay evidence obtained under section 447 should be inadmissible. Much of what they say may be uncontested, in which case it would have been a waste of time and money to insist that they swear affidavits.

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Books & Journal Articles
    • Nbr. 15-1, January 1952
    • The Modern Law Review
    ...... up was considered, and since the question was never argued the case is of little authority.4 was a case of compulsory winding up. The servant was entitled by his contract of service to three months’ notice : a petition for winding up was ......
  • Chancery Division
    • Nbr. 56-3, August 1992
    • Journal of Criminal Law, The
    ......In July 1988 the High Court ordered the compulsory winding up of the deposit taking company, Barlow Clowes Gilt ... the extent that such disclosure was for the benefit of the liquidation'. He referred to the judgment ofthe Vice-Chancellor in Marcel v ......
    • Nbr. 12-4, October 1949
    • The Modern Law Review
    Book reviewed in this article: Dicky's Conflict of Laws. Sixth edition under the general editorship of J. H. C. Morris Textbook of the English Conflict of Laws. By Clive M. Schmitthoff, ll.m. Prope...
    ...... LES PROBLhdES DE LA SAUVEQAItDE DE LA PAIX ET DE LA LIQUIDATION . 682 THE MODERN LAW REVIEW VOL. 12 they were part of a ... we rather unexpectedly And a couple of pages on compulsory insurance against third pa* risks. The much expanded ......
    • Nbr. 26-3, May 1963
    • The Modern Law Review
    Matrimonial Offences with Particular Reference to the Magistrates' Courts. BY LIONEL ROSEN, LL.M. (Lond.), Solicitor of the Supreme Court of Judicature. Government Guarantees to Foreign Investors. ...
    ...... deci- sions and the serious questions arising from compulsory naturalisation are reflected in his work to a ... A. GLEDHILL. BANKRUPTCY AND LIQUIDATION, being the Gilbart Lectures for 1962. By M~URICE MEGRAH. ......
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Law Firm Commentaries
  • Understanding Compulsory Liquidation
    • Mondaq UK
  • Administration To Compulsory Liquidation
    • Mondaq United Kingdom
  • Steel yourselves – troubles ahead?
    • LexBlog United Kingdom
    British Steel has entered compulsory liquidation today with EY being appointed as special managers. Is British Steel the first real victim of Brexit? First, as a result of the delay in the UK’s div...
    ... British Steel has entered compulsory liquidation today with EY being appointed as special managers. Is British ......
  • The deconstruction of Carillion
    • LexBlog United Kingdom
    On 15 January 2018, Carillion, the UK’s second-largest builder and one of the Government’s largest contractors, was placed into compulsory liquidation and the Official Receiver was appointed as liq...
    ...... one of the Government’s largest contractors, was placed into compulsory liquidation and the Official Receiver was appointed as liquidator, with ......
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