BTI 2014 LLC v Sequana SA and others; B.A.T. Industries plc v Sequana SA and another

Company – Dividend. The Chancery Division, in ruling on the payment of two dividends by a company, which was a subsidiary of the first defendant in the first action before the court, held that a dividend was a transaction entered into at an undervalue within the meaning of s 423(1) of the Insolvency Act 1986. It held that neither dividend contravened Pt 23 of the Companies Act 2006. However, the second dividend had been made with the intention of putting the dividend money beyond the reach of the first defendant company or otherwise prejudicing its interests.

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