Global Corporate Ltd v Hale

Insolvency – Transaction at undervalue. The Chancery Division ruled, in proceedings which arose out of the liquidation of a company, that payments made by the respondent director of the company did not amount to dividends and that ss 830 and 847 of the Companies Act 2006 did not apply to them. The applicant company had purchased the claim under a deed of assignment executed by the liquidators of the company. The court, in dismissing the application for a declaration, held that the payments were not unlawful dividend payments; they did not amount to a transaction at an undervalue and/or a preference; and that the respondent was not liable for misfeasance, under s 212 of CA 2006.

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