The Business Law Reports
[2017] Bus LR 82
Chancery Division
BAT Industries plc v Sequana SA and others
BTI 2014 LLC v Sequana SA and another
[2016] EWHC 1686 (Ch)
2016 Feb 23–
26,
29;
March 1– 4, 7– 11, 14– 16, 18, 21– 23;
April 5– 8, 11– 14, 22, 25– 29;
July 11
March 1– 4, 7– 11, 14– 16, 18, 21– 23;
April 5– 8, 11– 14, 22, 25– 29;
July 11
Rose J
Company— Director— Breach of duty— Director’s duty to act in interests of company’s creditors— Circumstances in which duty arising—
Companies Act 2006 (c 46), s 172(3)
Company— Powers— Reduction of capital— Directors signing solvency statement and reducing share capital in order to pay dividends— Whether in circumstances directors entitled to sign statement— Whether dividends lawful—
Companies Act 2006, s 643
Insolvency— Adjustment of prior transactions— Transactions at undervalue or preferences— Directors authorising distribution by way of dividend— Company potentially owing claimant substantial indemnity— Whether dividend “transaction” within scope of adjustment provision— Whether paid with purpose of putting assets beyond reach of claimant or prejudicing its interests—
Insolvency Act 1986 (c 45), s 423