The liquidator in a creditor’s voluntary liquidation sought a direction that he could take his costs of pursuing former directors in actions for wrongful trading and preferences, out of realised funds. It was held that nothing in the rules or Act supported the contention that such costs would be expenses of the voluntary winding up. There was no automatic priority of such expenses over preferential creditors, and the liquidator must look to the court’s discretion to recover any such costs.’Rule 4.218 tells us both what are the expenses to be treated as the expenses of a winding up and what priority they have inter se.’
Judges:
Peter Gibson LJ
Citations:
Gazette 30-Nov-2000, [2000] EWCA Civ 274, [2001] 3 All ER 499
Links:
Statutes:
Insolvency Act 1986, Insolvency Rules 1986 (SI 1986 No 1925) 4.218(1) 4.220(1)
Jurisdiction:
England and Wales
Cited by:
Cited – Kahn and Another v Commissioners of Inland Revenue; In re Toshoku Finance plc HL 20-Feb-2002
A company went into liquidation, being owed substantial sums by another company in the same group, but itself insolvent. A settlement did not include accrued interest, but was claimed to be taxed as if it had, and on an accruals basis. If so, was . .
Lists of cited by and citing cases may be incomplete.
Insolvency, Company, Costs
Updated: 31 May 2022; Ref: scu.147307