Qureshi (in her capacity as liquidator of Edgware Constitutional Club Ltd) v Association of Conservative Clubs Ltd

Liquidator – Members' voluntary winding up. The liquidator of the Edgware Constitutional Club Ltd (the club) applied for a declaration as to the legality of certain past and proposed distributions of the club's surplus assets to its members, on a members' voluntary winding up. The defendant Association of Conservative Clubs Ltd (ACCL), which was affiliated to the club, challenged the proposed distributions, contending that ACCL was entitled to the surplus assets. The Companies Court, in granting the liquidator's application, held, among other things, that the club's rules, together with s 107 of the Insolvency Act 1986, indicated that the liquidator was compelled to distribute any surplus in the club's assets to its members. Accordingly, the court sanctioned the past and proposed distributions to the club's members, and the payment of the proper expenses of the liquidation.

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