233 Effect of a Section 110 sale on creditors of the original companyA sale by the liquidator of the whole or part of the original company’s undertaking in exchange for shares in the purchasing company is binding not just on the members of the original company but on the creditors as well1. As with dissenting members, if the sale is prejudicial to their interests, they should apply to the court for an order that it shall not be carried out, or petition for a winding-up order within the year specified in Section 110(6) of the Insolvency Act 19862.Although creditors
A sale by the liquidator of the whole or part of the original company’s undertaking in exchange for shares in the purchasing company is binding not just on the members of the original company but on the creditors as well1. As with dissenting members, if the sale is prejudicial to their interests, they should apply to the court for an order that it shall not be carried out, or petition for a winding-up order within the year specified in Section 110(6) of the Insolvency Act 19862.
Although creditors
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
0330 161 1234