Tuesday, 28 August 2012

UK: England and Wales: what is the date of conversion when moving from administration to creditors' voluntary liquidation?

The Court of Appeal gave judgment last Friday in Cartwright v The Registrar of Companies [2012] EWCA Civ 1159. Lady Justice Arden (with whom Lord Justice Moses and the Master of the Rolls agreed) delivered the only reasoned opinion. At issue was the interpretation of paragraph 83(6) of Schedule B1 of the Insolvency Act 1986 and this question: what is the date of conversion where an administration is converted to a creditors' voluntary winding-up? At first instance the trial judge held that conversion took effect on the date the conversion notice was received by the registrar (see [2012] EWHC 359 (Ch)). Arden LJ held, however, that the conversion date was the date on which the conversion notice was registered by the registrar.

Update (30 August 2012): a summary of the decision has been published here by the ICLR.

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