Granada Group Ltd v Law Debenture Pension Trust Corporation plc

Pension – Pension scheme. The Court of Appeal, Civil Division dismissed an appeal by the claimant, Granada, which had unsuccessfully challenged the legality of, and sought to set aside, arrangements granting the defendant trustee a first fixed equitable charge over gilts on the basis that the arrangements had been entered into in contravention of s 320 of the Companies Act 1985. The court held that the directors had not acquired a non-cash asset from the company under s 320 of the Act, as the directors were contingent beneficiaries, and the trustee had been acting in its capacity as trustee of a pension scheme and had not been a 'connected person' within the meaning of the Act.

Category: