The company found itself unable to fund the pension scheme it had committed itself to. If it sought to pay the money due, the company would have to go into liquidation. It did not meet the minimum funding requirements of the Act. The company proposed a scheme of compromise with the trustees.
Held: There was no reason in law why a compromise could not be approved. In a liquidation, the pension trustees would stand as unsecured creditors, and accordingly receive a smaller sum. This was the best practical way forward, and within the powers of the trustees.
Judges:
Mr Charles Aldous QC
Citations:
Times 10-Jul-2002, Gazette 19-Sep-2002
Statutes:
Trustee Act 1925 15, Pensions Act 1995 75
Jurisdiction:
England and Wales
Financial Services, Employment, Trusts
Updated: 18 June 2022; Ref: scu.174309
