Skye Assets Fund Spc – Pressing The Pause Button On A Voluntary Liquidation

Where a shareholder has redeemed his shareholding following a failed investment without objection some months prior to the initiation of a voluntary liquidation, the Court will not permit him to use the statutory deferral provisions relating to voluntary liquidations for an abusive or improper purpose. This includes using such proceedings as leverage to exert undue pressure in proposed claims against the company or directors. Additionally, the prior redemption of a shareholding, means that a former shareholder does not have standing as an investor to petition for a court-supervised liquidation. On the facts in this case (which may apply in similar cases), any creditor's standing to do so, would at best be contingent and prospective in circumstances where they have not established a claim by way of judgment or otherwise.