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Setting aside a statutory demand—share sale guarantee liability (Harrling and Steen v Midgley and others)

Setting aside a statutory demand—share sale guarantee liability (Harrling and Steen v Midgley and others)
Published on: 21 January 2020
Published by: LexisPSL
  • Setting aside a statutory demand—share sale guarantee liability (Harrling and Steen v Midgley and others)
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  • What was the background?
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Article summary

Restructuring & Insolvency analysis: The insolvency court held that an alleged debt, arising from a personal guarantee liability relating to a company share sale agreement, was disputed on grounds which appeared substantial (applying Insolvency (England and Wales) Rules 2016, SI 2016/1024, rule 10.5(5)(b)). The guarantors (directors of the share purchaser) alleged that material misrepresentations were made to them by the vendor shareholders during the course of the negotiations of the share sale agreement, and that their personal guarantees were thus arguably invalid. The statutory demands were set aside. Written by James Stuart, barrister, at Lamb Chambers. or take a trial to read the full analysis.

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