Allegation that the payment of dividends was in breach of Part 23 of the 2006 Act. The direcors had signed the necessary certificate as to solvency before resolving to reduce the company capital and paying a dividend.
Held: When making such a statement, the directors were not being asked what would be the position if a calamity occurred. The test was whether at the time and circumstances of the statement, and taking account of the anticipated contingencies, the company was solvent.
However, the payment of a dividend could be a transaction at an undervalue within section 423(1) of the 1986 Act.
Judges:
Rose J
Citations:
[2016] EWHC 1686 (Ch), [2016] WLR(D) 388, [2017] Bus LR 82
Links:
Statutes:
Companies Act 2006, Insolvency Act 1986 423(1)
Jurisdiction:
England and Wales
Cited by:
See Also – BTI 2014 Llc v Sequana Sa and Others ChD 10-Feb-2017
Applications and orders following dismissal of principle claim. . .
Appeal from – BTI 2014 Llc v Sequana SA and Others CA 6-Feb-2019
The Court considered a Director’s duty to act in the interests of his company’s creditors. The Directors were said to have paid out an excessive dividend to put assets beyond the reach of its creditors. . .
Lists of cited by and citing cases may be incomplete.
Company, Insolvency
Updated: 06 December 2022; Ref: scu.566875
