Q&As

A client is in voluntary liquidation and has the benefit of an overage over some land. The liquidation should be finalised shortly. Can the benefit of the overage be assigned to a third party before its finalised?

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Produced in partnership with Simon Passfield of Guildhall Chambers
Published on: 22 February 2018
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In answering this Q&A, we have considered the power of a liquidator to deal with the company’s assets after the commencement of liquidation.

Section 107 of the Insolvency Act 1986 (IA 1986), which applies to both members’ and creditors’ voluntary liquidation, provides that the company’s property shall, on winding up, be applied in satisfaction of the company’s liabilities and, subject to that application,

Simon Passfield
Simon Passfield

Guildhall Chambers

Simon is a specialist insolvency barrister who undertakes litigation and advisory work in all aspects of corporate and personal insolvency law. He has been consistently recognised as a leading junior in this field by Chambers and Partners and Legal 500 and has appeared in a number of reported insolvency cases.

In the last year, Simon has been involved in the leading cases concerning the effect of bankruptcy on pension rights (Horton v Henry [2015] 1 WLR 2488; Re X (Application for Income Payments Order) [2014] BPIR 1081), has acted for a trustee in bankruptcy in a variety of applications in a complex multi-million pound bankruptcy involving the concealment and disposal of assets by a serially non-cooperative bankrupt (Wood v Lowe [2015] EWHC 2634 (Ch)), has acted successfully for majority creditors in seeking to remove liquidators in a multi-million pound, multi-jurisdictional liquidation (Re Overfinch Bespoke Vehicles Limited), has acted successfully for a liquidator in a claim against a Premier League football club (Events Management Catering Ltd v Hull City Tigers Ltd), has obtained freezing injunctions against the former directors of a company in liquidation (Re Lim’s Fish and Chips Limited) and secured a suspended committal order against a misfeasant bankrupt (Re Hinchliffe).

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Voluntary liquidation definition
What does Voluntary liquidation mean?

liquidation not involving the court, either members voluntary liquidation (MVL) for solvent companies, or creditors voluntary liquidation (CVL) for insolvent companies.

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