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

    It may sometimes be beneficial to the company and its creditors that the company should be enabled to complete a particular contract or project, or to continue to carry on its business generally in its ordinary course with a view to a sale of the business as a going concern. 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.

    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.

    A disposition carried out in good faith in the ordinary course of business at a time when the parties are unaware that a petition has been presented may, it seems, normally be validated by the court (see re Wiltshire Iron Co.

  • 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

    It is no misuse of language to describe the property as being held by the trustee on a statutory trust if the qualifying adjective "statutory" is understood as indicating that the trust does not bear all the indicia which characterise a trust as it was recognised by the Court of Chancery apart from statute.

  • 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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  • Policyholders Protection Act 1975
    • UK Non-devolved
    • January 01, 1975
    ... ... of the Board in case of companies and friendly societies in liquidation ... 5: Application of sections 6 to 11 ... (1) Subject to the following ... 7(5), 93(4)) Marginal Citations # M7 1974 c. 46 ... 6: Compulsory insurance policies and securities ... (1) This section applies to any ... ...
  • Companies Act 1862
    • UK Non-devolved
    • January 01, 1862
    ... ... offering themselves for Examination or summoned to attend by compulsory Process of the Court, or to produce Documents before the Court; and the ... S-144 ... Costs of voluntary Liquidation. 144 Costs of voluntary Liquidation ... 144. All Costs, Charges, and ... ...
  • The Employment Tribunals (Constitution and Rules of Procedure) (Early Conciliation: Exemptions and Rules of Procedure) (Amendment) Regulations 2020
    • UK Non-devolved
    • January 01, 2020
    ... ... sist) of the proceedings in the event of a respondent’s compulsory liquidation or administration; and ... (h) (h) whether to dismiss a ... ...
  • Bankruptcy Act 1914
    • UK Non-devolved
    • January 01, 1914
    ... ... A statement or admission made by any person in any ... compulsory examination or deposition before any court on the ... hearing of any ... shall become vested in the official receiver ... In every liquidation by arrangement under the Bankruptcy Act, 1869 ... which was pending at the ... ...
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Books & Journal Articles
  • Preface
    • Contents
    • Law of Insolvent Partnerships and Limited Liability Partnerships
    • Elspeth Berry/Rebecca Parry
    • 5-6
    ... ... further complexity, with the legislative frameworks for both liquidation and bankruptcy being modified to the extent of providing entirely new ... concurrent petitions against partners), the voluntary and compulsory liquidation of LLPs, and the joint bankruptcy procedure which is unique to ... ...
  • Index
    • Appendices
    • Law of Insolvent Partnerships and Limited Liability Partnerships
    • Elspeth Berry/Rebecca Parry
    • 733-746
    ... ... 123–4 purpose 94–5 better outcome than possible in liquidation 96–7 making a distribution 97–8 rescue as a going concern 95–6 ... 3 Compulsory liquidation 262–3 Confiscation orders 263 Connected persons 12, 64–5 ... ...
    • No. 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 ... ...
  • Index
    • Part V. Conclusion
    • Offshore Commercial Law in Bermuda - 2nd Edition
    • Ian R. C. Kawaley/Karen Skiffington
    • 737-759
    ... ... directors 21.11–21.13 insolvent liquidation 21.28–21.29 overview 21.4, 21.6–21.7 re-domiciliation or continuation ... US law, compared 18.7–18.8, 18.36, 18.40, 18.42, 18.52 Compulsory liquidation 17.17 bye-laws, under 17.24–17.25 commencement proceedings ... ...
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Law Firm Commentaries
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