Allegation that the payment of dividends was in breach of Part 23 of the 2006 Act. The direcors had signed the necessary certicate as to solvency before resolving to reduce the company capital and paying a dividend.
Held: When makingsuch 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 compny was solvent.
However the payment of a dividend could be a transaction at ann undervalure within section 423(1) of the 1986 Act.
Updated: 19 January 2022; Ref: scu.566875