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:
Banking and Finance image
The impact of coronavirus (COVID-19) on the debt capital markets
Banking and Finance |
5 min read
In-House image
Latest Legal and Regulatory news update - 27th March
In-House |
10 min read
Family image
Coronavirus (COVID-19)—impact on arrangements for children
Family |
11 min read
Future of Law image
Mind mental health charity—5 tips for keeping up mental health while at home
Future of Law |
3 min read
Latest Articles:
SA-0320-055-scientist-189x144
Coronavirus (COVID-19)—proposal for temporary changes to UK insolvency law
Restructuring and Insolvency |
5 min read
washing-hands
Directors’ duties and coronavirus (COVID-19)—The risk of wrongful trading when you cannot trade
Restructuring and Insolvency |
5 min read
Stock exchange shutdowns in the time of coronavirus (COVID-19)
Restructuring and Insolvency |
6 min read
Coronavirus (COVID-19) crisis—Is keeping calm & carrying on enough?
Restructuring and Insolvency |
6 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