Re Floor Fourteen Ltd in the Court of Appeal

Walters, A. ORCID: 0000-0002-5854-4655, 2001. Re Floor Fourteen Ltd in the Court of Appeal. Company Lawyer, pp. 215-217. ISSN 0144-1027

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Abstract

There is now an extensive literature chronicling the barriers that liquidators face in trying to bring avoidance proceedings under the Insolvency Act 1986. One such barrier is the treatment of the liquidator's legal costs. Broadly speaking, the liquidator is entitled to an indemnity out of the company's assets in relation to the costs incurred should the action fail. However, the value of the indemnity depends on whether the costs are treated as an expense of the liquidation ranking for payment ahead of preferential creditors and any floating charge. In Re MC Bacon (No. 2), Millett J. held that the liquidator could not recoup the costs of an unsuccessful action against the defendant bank as a liquidation expense. The liquidator contended that his costs should be treated as an expense “properly chargeable or incurred by … the liquidator in preserving, realising or getting in any assets of the company” within rule 4.218(1)(a) of the Insolvency Rules 1986.

Item Type: Journal article
Publication Title: Company Lawyer
Creators: Walters, A.
Publisher: Sweet & Maxwell/Thomson Reuters
Place of Publication: London
Date: 2001
ISSN: 0144-1027
Divisions: Schools > Nottingham Law School
Depositing User: EPrints Services
Date Added: 09 Oct 2015 10:46
Last Modified: 09 Jun 2017 13:38
URI: http://irep.ntu.ac.uk/id/eprint/17922

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