Godefroy & Stoneman v Company Health Limited & Others


Reference:
[2015] EWHC 3978 (Ch)

Date:
16th December 2015

Court:
Chancery Division

Facts:

Liquidators’ powers and duties - Subsidiaries guarantors of parent company debt - Dividends – Equalisation between guarantors

Jonathan Lopian represented the joint liquidators of four group companies, subsidiaries and co-guarantors of a company which had borrowed money from three creditors. All of the companies subsequently went into voluntary liquidation and the creditors submitted claims against all of the subsidiaries pursuant to their guarantees. Three of the companies repaid the loan in full but in different amounts. The liquidators wished to equalise the position as between the paying subsidiaries because further dividends were to be declared by the four companies. In the absence of liquidation committees, they applied to the court for declarations that the proposed dividends were held on trust by them for the three paying subsidiaries in specified and different amounts, in order to achieve a form of equitable accounting.    


Judge:
HHJ Hodge QC (sitting as judge of the High Court)

Comment:

Click here to view judgment

Bermans was the instructing solicitor

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