Bank Notes

D - Disposal of assets

11/2/19

BREWER v IQBAL [2019] EWHC 182 (Ch)

The court reviewed the fiduciary duties of administrators of companies [37] and their duties of care [52]. On the facts an administrator had sold the company's assets at an undervalue to a company incorporated by the company's directors. He had breached his fiduciary duty by failing to act with single-minded loyalty to the company and by failings in his decision-making. He had not relied on suitably qualified or competent professional advice. Compensation in equity was to be measured by the objective value of the property lost, determined at the date when the account was taken, and with the benefit of hindsight but was discounted to reflect the fact that there would be a buyers’ market for the property [112].

20/11/15

RE HUME CAPITAL SECURITIES LTD [2015] EWHC B25 (Ch)

The court approved a scheme for re-distribution of client assets to clients by a company in special administration.

28/10/14

EDWARDS v BUSINESS ENVIRONMENT LTD [2014] EWHC 3540 (Ch)

The court was not satisfied on a balance of probabilities that goods owned by a third party which had been used in serviced offices were in the possession of the company which owned the offices. Either the owner of the assets had retained possession, or it had transferred possession to the sub-tenants. On that basis the power conferred on the court by para 72 of Sch B1 to the Insolvency Act 1986 to authorise the company’s administrators to dispose of the goods did not arise because that power required the goods to be in the possession of the company. If the power had arisen the court would not have been satisfied that the balance of convenience lay in ordered an immediate sale.