The insurance company was to be wound up. It operated internationally but was registered in Australia. The Australian liquidator now sought an order for the transfer of assets held here to Australia.
Held: It was inevitable that cross border insolvency arrangements would cause difficulty, and particularly so for insurance companies. Such a transfer would prejudice non-insurer creditors here, without those creditors obtaining any counterbalancing benefit in the Australian liquidation. The order was refused.
Judges:
Chancellor of the High Court, Tuckey LJ, Carnwath LJ
Citations:
[2006] EWCA Civ 732, Times 06-Jul-2006, [2007] 1 All ER 177
Links:
Statutes:
Insolvency Act 1986 426, Co-operation of Insolvency Courts (Designation of Relevant Countries and Territories) Order 1986
Jurisdiction:
England and Wales
Citing:
Cited – Re: BCCI (No.10) ChD 1997
The liquidators of BCCI in different jurisdictions had created a pooling agreement in the liquidation of the place of the company’s incorporation, namely Luxembourg to which all assets were to be remitted and in which all creditors were to share . .
Cited – Re Associated Travel Leisure and Services Ltd (in liquidation) ChD 1978
It is possible to give retrospective sanction for acts which require the sanction of the court where such sanction has not been obtained in advance, in this case to authorise the liquidators to pay the costs of the solicitors out of the estate of . .
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 . .
Cited – Stocznia Gdanska SA v Latreefers Inc; In re Latrefeers Inc; Stocznia Gdanska SA v Latvian Shipping Co and others (No 2) CA 15-Mar-2000
Possible claims against a foreign company for misfeasance, or wrongful or fraudulent trading might be sufficient to justify proceedings here to wind up a foreign registered company. A second requirement is that some person within this jurisdiction . .
Cited – In re Lines Bros Ltd CA 1982
The liquidators in a creditors voluntary liquidation converted foreign currency debts of the company into Sterling at the rate of exchange prevailing at the date of the resolution to wind up. As a result of the depreciation of Sterling against the . .
Cited – Re International Tin Council ChD 1987
An order for the winding up of a foreign company operates universally, applies to all the foreign company’s assets and brings into play the full panoply of powers and duties under the Insolvency Act 1986 like any other winding up order. Millett J . .
Cited – England v Smith CA 8-Dec-1999
A liquidator of an Australian company sought damages from a ‘world-wide’ company Arthur Andersen’ and sought in particular to examine a partner in the UK. Examination was at first refused since an English court would not make a similar order. That . .
Cited – Hughes and others v Hannover Re Ruckversicherungs-Aktiengesellschaft CA 28-Jan-1997
An insolvency court answering an international call for assistance has the full range of remedies available to it. It may exercise ‘its own general jurisdiction and powers’ as well as the insolvency laws of England and the corresponding laws of the . .
Cited by:
Appeal from – McGrath and others v Riddell and others HL 9-Apr-2008
(Orse In Re HIH Casualty and General Insurance Ltd)
HIH, an Australian Insurance company, became insolvent. An order was sought for the collection and remission of it assets in England under a letter of request from the Australia Court.
Lists of cited by and citing cases may be incomplete.
Insolvency, International
Updated: 06 July 2022; Ref: scu.242443