New judgment: Brown & Anor, the Joint Administrators of Loanwell Ltd v Stonegale Ltd (Scotland); & other cases  UKSC 30
22 Wednesday Jun 2016
On appeal from:  CSIH 12
Conjoined proceedings were brought by the joint administrators of three companies in respect of the transfer of four properties from the companies, under the Insolvency Act 1986, s 242, on the basis that these were “gratuitous alienations”. Lord Reed finds that there was no reciprocity between the disposal of the four properties, which were gifted to the appellants Stonegale Ltd and Mr Pelosi junior, and the earlier payment to the bank. The transactions had the purpose and effect of diverting assets from the companies’ creditors, which was exactly what s 242 of the 1986 Act was intended to prevent.
To watch the hearing, please visit: Supreme Court website (15 Feb 2016 morning session)