Totalbrand Limited (the company) entered creditors’ voluntary liquidation on 28 July 2016. The liquidators of the company assigned certain rights of action to Cage Consultants Limited (CCL) under s.246ZD of the 1986 Insolvency Act (IA86). These rights of action included claims against the directors of the company for misfeasance, and claims under IA86 relating to fraudulent trading (s.213), transactions at an undervalue (s.238) and preferences (s.239). The company was dissolved on 24 September 2019. At the first hearing the district judge refused an application by the directors that proceedings against them by CCL should be dismissed or stayed.
On appeal, the High Court helpfully considered the background and policy objectives of the p…
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