Some news and views from UK academia and practice on the law, policy and practice of insolvency
Friday, 10 December 2010
s.6 of the Insolvency Act 1986 considered - Macaria Investments Ltd v Sanders & Anor  EWHC 3353 (Ch) (17 December 2010)
Mr Justice Roth (pictured) has handed down his judgment in Macaria Investments Ltd v Sanders & Anor  EWHC 3353 (Ch) (17 December 2010). The case concerns an application pursuant to section 6 of the Insolvency Act 1986 for an order that the approval of a Company Voluntary Arrangement ("CVA") be revoked on the grounds that there was material irregularity in relation to that meeting. After a lengthy exposition of the facts the learned judge concludes: "In my view, it cannot be disputed that a decision in a creditors' meeting to approve a CVA that was carried only because of the votes based on alleged liabilities that did not in truth exist constitutes a material irregularity within the terms of section 6(1)(b) of the Act. Under section 6(4) of the Act, the court therefore has power to revoke any decision of the meeting approving the CVA. In the circumstances, I consider that it is clearly appropriate to exercise that power and I shall make an order accordingly."