The Business Law Reports
[2019] Bus LR 2178
Court of Appeal
BAT Industries plc and others v Sequana SA
BTI 2014 llc v Sequana SA and others
[2019] EWCA Civ 112
2018 June 5, 8,11;2019 Feb 6
Longmore, David Richards, Henderson LJJ
Insolvency— Transaction at undervalue— Application to set aside— Company paying substantial dividend to parent— Whether dividend constituting “gift” or “transaction” for no consideration— Whether paid with intention of putting dividend moneys beyond creditors’ reach— Whether provision against debt avoidance applying — Insolvency Act 1986 (c 45), s 423(1)(2)(3) (as amended by Civil Partnership Act 2004 (c 33), s 261(1), Sch 27, para 121)
Company— Director— Breach of duty— Point at which director’s duty to act in interests of company’s creditors engaged— Whether once engaged creditors’ interests paramount — Companies Act 2006 (c 46), s 172(3)