Q&As

Does a distribution of property under a voluntary liquidation need to comply with Part I of the Landlord and Tenant Act 1987 right of first refusal? Does the property vests in the liquidator who is required to distribute in species to the shareholders?

read titleRead full title
Published on LexisPSL on 01/06/2016

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Does a distribution of property under a voluntary liquidation need to comply with Part I of the Landlord and Tenant Act 1987 right of first refusal? Does the property vests in the liquidator who is required to distribute in species to the shareholders?

Section 4 of the Landlord and Tenant Act 1987 (LTA 1987) defines 'relevant disposals' as disposals by the landlord of any estate or interest, legal or equitable, in premises to which Pt I applies.

By making a distribution in specie, the liquidator is arguably not making a disposal of the company property but rather a distribution of company property in satisfaction of the shareholder’s rights against the company in accordance with IA 1986, s 107. We have been unable to locate any case law or commentary in support of this argument but would direct you to section (d) of paragraph L3011 of Tolley’s Insolvency Law Serv

Related documents:

Popular documents