ABSTRACT
Section 127 of the Insolvency Act 1986 (UK) renders void dispositions of a company’s property after the commencement of winding up. This article critically analyses the legal position relating to payments in and out of current accounts, with an emphasis on three crucial elements: (1) the need to investigate whether value from the company has accrued to another in cases where there is a reduction or extinguishing of property of the company; (2) the necessity of clear focus on the principles of property and property rights in question; and (3) the importance of noting the common law consequences of invalidity under section 127.
Lo, Stefan HC, Current Accounts and Void Dispositions After Commencement of Winding Up (October 5, 2020). [2020] Journal of Business Law 624.
First posted 2021-01-08 08:50:14
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