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Insolvency – Transactions at an undervalue. The liquidator had applied to recover money paid to the respondent company secretary as constituting transactions at an undervalue. The circuit judge found that the respondent had rebutted the statutory presumption that the company had not been insolvent at the time that the payments had been made. The High Court found that the presumption had not been rebutted and made its own findings on the solvency of the company at the relevant time. The Court of Appeal, Civil Division, considered the established law on when a company was deemed to be unable to pay its debts, within the meaning of s 123 of the Insolvency Act 1986, and dismissed the respondent's appeal.
Insolvency – Transactions at an undervalue. The liquidator had applied to recover money paid to the respondent company secretary as constituting transactions at an undervalue. The circuit judge found that the respondent had rebutted the statutory presumption that the company had not been insolvent at the time that the payments had been made. The High Court found that the presumption had not been rebutted and made its own findings on the solvency of the company at the relevant time. The Court of Appeal, Civil Division, considered the established law on when a company was deemed to be unable to pay its debts, within the meaning of s 123 of the Insolvency Act 1986, and dismissed the respondent's appeal.
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