Source: All England Reporter
Publisher Citation: [2016] All ER (D) 11 (Jul)
Neutral Citation: [2016] EWHC 1536 (Ch)
Court: Chancery Division

Proudman J

Representation Francis Collaco Moraes (instructed by MAX Legal Lted) for the trustees.
  Giles Maynard-Connor (replacing Glen Davis QC) (instructed by Pannone Corporate LLP) for the second to fifth respondents.
Judgment Dates: 29 June 2016


Bankruptcy - Disposal of property - Application for relief - Applicants being trustees in bankruptcy of first respondent - First respondent transferring minority shares in companies to second respondent and second respondent transferring shares to third respondent - Trustees in bankruptcy applying for relief on basis transfers being made after presentation of bankruptcy petition - Shares being restored - Trustees seeking value of the shares as at date of transfers contending shares devalued - Whether trustees entitled to relief claimed - , .

The Case

Bankruptcy Disposal of property. The Chancery Division granted the applicant trustees in the bankruptcy of the first respondent relief under of the Insolvency Act 1986 after he had transferred his minority shares in a company to the second respondent following the presentation of a bankruptcy petition. The respondents had argued that the monetary relief sought by the trustees was unprecedented where the asset, namely the shares, had been returned and that the trustees had failed to plead or prove actual loss. The court held that the trustees had not been not required to plead actual loss and that the second to the fifth respondents had not acted in god faith and were jointly liable for the loss caused, namely the devaluation of the shares. The court held that the trustees were entitled to relief in the form of a fair value of the shares as at the date of the transfers.

Practice Areas

If you are a LexisLibrary subscriber you can read more about this case here.