Commentary

115.2 Definition of ‘security’ and ‘goods in the company’s possession’

BANKRUPTCY AND INSOLVENCY (CORPORATE INSOLVENCY) vol 3(3)
| Commentary

115.2 Definition of ‘security’ and ‘goods in the company’s possession’

| Commentary

115.2 Definition of ‘security’ and ‘goods in the company’s possession’

It is settled that goods ‘remain in the company’s possession’ even if they are sublet1; that the statutory right to detain an aeroplane for non-payment of landing dues is a ‘security’2, as is a solicitor’s lien3; and generally, that the court takes a broad common-sense view of the prohibition. A right to forfeit a lease for non-payment of rent or breach of covenant, however, does not constitute security within the meaning of the Insolvency Act 1986 so the broad common-sense view does not include any arrangement which is

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