Friday 11 November 2016

UK: England and Wales: winding-up in the public interest and punishment for past behaviour

Judgment was given yesterday in Re Caledonian Ltd [2016] EWHC 2854 (Ch). The case concerned an application by the Secretary of State for Business, Innovation and Skills (now Business, Energy and Industrial Strategy) for the winding-up of two companies under section 124A ("Petition for winding up on grounds of public interest") of the Insolvency Act 1986.

The trial judge, Mr Robin Dicker QC sitting as a Deputy Judge of the High Court, granted the Secretary of State's application, holding that the business of the companies had been conducted in a way that did not meet accepted minimum standards of commercial behaviour. Winding-up would, the Deputy Judge held, protect the public and also act as a punishment for past behaviour and mark the court's disapproval of that behaviour.

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