Refusing a liquidator’s wrongful trading application


12/09/2016

Restructuring & Insolvency analysis: David Bowden, solicitor-advocate of David Bowden Law, Andy Whelan, insolvency practitioner and partner at WSM Marks Bloom LLP, and David Oliver, consultant at Verisona Law (who acted for the successful directors), discuss the recent decision in Grant and another v Ralls and others.

Original news

Re Ralls Builders Ltd (in liquidation); Grant and another v Ralls and others [2016] EWHC 1812 (Ch), [2016] All ER (D) 113 (Jul)

The Chancery Division ruled that having found the joint liquidators’ application under section 214 of the Insolvency Act 1986 (IA 1986) for a contribution from the directors of a company on a wrongful trading claim had failed, it would not be appropriate to make the director’s pay a contribution to the assets of the company in respect of the joint liquidators’ fees and expenses in investigating and pursuing that unsuccessful claim.

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