Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
The Supreme Court's finding in Stonegale Ltd v Brown that transfers of properties by Scottish companies which later went into administration were gratuitous alienations is explained by advocate Susan Ower, of Axiom Advocates.
Stonegale Ltd v Brown and another, the joint administrators of Loanwell Ltd  UKSC 30,  All ER (D) 133 (Jun)
The Supreme Court held that the purpose and effect of transfers of property by Scottish companies which subsequently entered administration had been to divert assets away from the companies’ creditors, contrary to section 242 of the Insolvency Act 1986 (IA 1986). That they were gratuitous alienations was plain and obvious.
Oceancrown, Loanwell and Questway were three companies controlled by Ralph Pelosi, who was the father of the second appellant. The companies owned five properties, over which the Anglo-Irish Bank held standard securities. The bank was informed that all five properties were to be sold for a total of £2,414,000. However, nine months before the companies entered administration, one of the properties was sold for £2,467,500. The sale was not direct. First, the property was transferred for a sum recorded as £762,000 to another company, Strathcroft, which was also owned by Ralph Pelosi, before being sold on the same day to the ultimate purchaser in a back-to-back transfer. The bank was sent the £2,414,000 from the proceeds of the sale, and believing it to be from the sale of the five properties, discharged the securities over all of those properties.
Three of the remaining four properties were transferred to the first appellant, Stonegale, whose sole shareholder was the second appellant, Ralph’s son Norman, while the fourth property was transferred to Norman himself and was later sold by him for £125,000.
After the three companies entered administration, the respondent joint administrators sought to have the transfers of the three properties to
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
Stephen qualified as a solicitor in 2005 and joined the Restructuring and Insolvency team at Lexis®PSL in September 2014 from Shoosmiths LLP, where he was a senior associate in the restructuring and insolvency team.
Primarily focused on contentious and advisory corporate and personal insolvency work, Stephen’s experience includes acting for office-holders on a wide range of issues, including appointments, investigations and the recovery and realisation of assets (including antecedent transaction claims), and for creditors in respect of the impact on them of the insolvency of debtors and counterparties.
0330 161 1234