The insolvent company held assets for its clients. The liquidators proposed a scheme of arrangement which would allow them protection.
Held: The 2006 Act was to allow arrangements between a company and its creditors. The company’s former clients with proprietary interests which were held in trust for them by the company were not creditors. The court had no jurisdiction to sanction a scheme of arrangement which included those proprietary interests.
Judges:
Lord Neuberger of Abbotsbury, Master of the Rolls, Lord Justice Longmore and Lord Justice Patten
Citations:
Times 12-Nov-2009, [2009] EWCA Civ 1161
Links:
Statutes:
Insolvency Act 1986, Companies Act 2006
Jurisdiction:
England and Wales
Citing:
Appeal from – Lehman Brothers International (Europe) (No 2), Re ChD 21-Aug-2009
Parties said that assets of the insolvent company were held by it in trust for them.
Held: The court had no jurisdiction to sanction a scheme of arrangement proposed by the administrators between the company and former clients who had . .
Lists of cited by and citing cases may be incomplete.
Insolvency, Company
Updated: 06 December 2022; Ref: scu.377778