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ARTICLE · 03 MAY 2017

Insolvency Litigation: Recent Cases And Issues (April 2017)

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This month the new Insolvency Rules 2016 came into force, replacing the Insolvency Rules 1986.

United KingdomInsolvency/Bankruptcy/Re-Structuring
Alex Jay
Alex Jay
Kanika Kitchlu-Connolly
Kanika Kitchlu-Connolly
Ian Weatherall
Ian Weatherall
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This month the new Insolvency Rules 2016 came into force, replacing the Insolvency Rules 1986. We cover this, and other issues affecting professionals in the insolvency and fraud investigation industry below.

Is the transfer of shares by a trustee, even if in breach of trust, a disposition?

The Supreme Court has held that the transfer of shares by a trustee, in breach of trust, is not a disposition for the purposes of section 127 of the Insolvency Act 1986 (IA 86, s.127). The disposal in question involved the transfer of the legal title to the asset, which was not an interest the company ever held. The company only had an equitable interest in the shares; it never held the legal title to them.

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