How to cope when a foreign company in liquidation in England is being dissolved in its country of incorporation

How to cope when a foreign company in liquidation in England is being dissolved in its country of incorporation
 What is the impact on a liquidation if a company is dissolved in its country of incorporation? David Leibowitz, restructuring and insolvency partner at Berwin Leighton Paisner LLP, discusses the doctrine of reanimation in light of the case of Re Agrenco Madeira.

 

Original news

Re Agrenco Madeira—Comércio Internacional Lda [2014] Lexis Citation 52, [2014] All ER (D) 118 (Apr)

A company incorporated under the laws of Portugal entered into liquidation in England. It became clear that the Portuguese authorities had subsequently initiated proceedings for the involuntary dissolution and liquidation of the company in Portugal. The liquidators sought relief in the English court to ensure that there was no question as to their authority to act. The Companies Court decided that, on the proper application of the Insolvency Act 1986, s 225(1) (IA 1986) the liquidators still had that authority.

What were the background facts to the decision?

Agrenco was incorporated under the laws of Portugal. It was wound up in England under IA 1986, s 221 as an unregistered company. At a point in time when the liquidation was well underway but not yet concluded, the liquidators were informed that the Madeiran Offshore Registry had initiated proceedings for the involuntary dissolution and liquidation of Agrenco.

The liquidators applied to the English Companies Court for declaratory relief confirming that, if Agrenco is dissolved in Portugal, as appeared to be imminent, the winding up in England will continue and they will remain duly authorised to discharge their functions as liquidators.

Authorities considered

Mr Bayfield, Counsel for the liquidators, referred the court to the decisions of the House of Lords in Russian and English Bank and Florance Montefiore Guedalla v Baring Brothers & Co Ltd

Subscription Form

Related Articles:
In-House image
Latest Legal and Regulatory news update - 06 December 2019
In-House |
8 min read
Dispute Resolution image
Personal Injury—15th edition of the Judicial College Guidelines published
Dispute Resolution |
3 min read
Financial Services image
FS weekly highlights—5 December 2019
Financial Services |
39 min read
Corporate Law image
Private Equity bidder seals bid with mandatory offer
Corporate Law |
3 min read
Latest Articles:
SA-1019-028 925x286 Restructuring and Insolvency 1
Costs—non-party costs against liquidator’s firm—Arkin cap (Burnden Holdings (UK) Ltd v Fielding)
Restructuring and Insolvency |
5 min read
Insolvency—appeal in a transaction at an undervalue claim (Re Guardian Care Homes (West) Ltd)
Restructuring and Insolvency |
5 min read
Is it legitimate to use the MVL or CVL process for the intended effect of tax avoidance? (Re PAG Asset Preservation Ltd and another company)
Restructuring and Insolvency |
5 min read
Brexit—impact of the Withdrawal Agreement and draft Withdrawal Agreement Bill on R&I lawyers
Restructuring and Insolvency |
4 min read

Already a subscriber? Login
RELX (UK) Limited, trading as LexisNexis, and our LexisNexis Legal & Professional group companies will contact you to confirm your email address. You can manage your communication preferences via our Preference Centre. You can learn more about how we handle your personal data and your rights by reviewing our  Privacy Policy.

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login