Re Whitestar Management Ltd; Conn and another v Thompson and others

Company – Liquidation. The Companies Court ruled, on the application of the joint liquidators of a company, that the sale of the company's business under an asset sale agreement (made between the company and the second respondent company less than five months before the initial appointment of joint administrators to the company) constituted a transaction at an undervalue, within the meaning of s 238 of the Insolvency Act 1986. The first respondent former director and shareholder of the company was ordered to pay £44,687.05 to the company or its insolvency office-holders, and the third respondent, who was also a director and shareholder of the company, was ordered to pay a total of £62,562.50, in respect of the transaction at an undervalue.

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