Wednesday, 19 January 2011

UK: before the Supreme Court today - a subsidiary company?

The Supreme Court hears argument today in Farstad Supply A/S v Enviroco Limited, on appeal from [2009] EWCA Civ 1399. The Supreme Court's case summary reports that the principal issue before the court is whether a company whose parent company pledged its controlling shares in the alleged subsidiary to a bank as security remained a subsidiary of that parent company within the meaning of section 736 of the Companies Act (1985) (see, now, section 1159 and Schedule 6 of the Companies Act (2006)). Further details are available here.

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