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Re Agriplant Services Ltd
''Re Agriplant Services Ltd'' [1997] 2 BCLC 598 is a UK insolvency law case, concerning voidable preferences under s 239 of the Insolvency Act 1986. It is an example of what will be considered an unlawful and voidable preference when a company is close to insolvency. Facts Agriplant leased some equipment from Closed Asset Finance Ltd (CAF) for its agricultural and earth moving business. It owed £20,000 to CAF, and the debt was guaranteed by Agriplant's majority shareholder, Mr George Sagar. An accountant advised no payments should be made to any creditors, but when Agriplant got more money on one of its contracts, it paid off CAF. It went into liquidation shortly after. One of the liquidators was the accountant. The liquidators sought an order that Mr Sagar or CAF should repay the £20,000 sum. Mr Sagar argued he had no desire to put himself or CAF in a better position before liquidation began. Judgment Jonathan Parker J ordered repayment by Closed Asset Finance Ltd of the £20, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
UK Insolvency Law
United Kingdom insolvency law regulates companies in the United Kingdom which are unable to repay their debts. While UK bankruptcy law concerns the rules for natural persons, the term insolvency is generally used for companies formed under the Companies Act 2006. "Insolvency" means being unable to pay debts. Since the Cork Report of 1982, the modern policy of UK insolvency law has been to attempt to rescue a company that is in difficulty, to minimise losses and fairly distribute the burdens between the community, employees, creditors and other stakeholders that result from enterprise failure. If a company cannot be saved it is "liquidated", so that the assets are sold off to repay creditors according to their priority. The main sources of law include the Insolvency Act 1986, the Insolvency Rules 1986 (replaced in England and Wales from 6 April 2017 by the Insolvency Rules (England and Wales) 2016 – see below), the Company Directors Disqualification Act 1986, the Employment R ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
