Tag Archives: validation orders; section 127

Are you “special” enough to be validated?

The presumption that courts normally validate dispositions by a company subject to a winding up petition if such dispositions are made in good faith and in the ordinary course of business has been called into question in the recent case of Express Electrical Distributors Ltd v Beavis and others [2016].  Whilst the court has discretion … Continue Reading

Insolvent sellers and validation orders in the English High Court: Buyer Beware!

In the recent case of Wilson (as liquidator of 375 Live Ltd) v SMC Properties Limited, the English High Court reviewed the policy behind section 127 Insolvency Act 1986 (“the Act”) and the underlying principles that apply to validation order applications. The Court considered the interaction between the requirement of good faith and the role … Continue Reading