77 High Street
Tel: 020 8658 3922
Fax: 020 8658 8694
1998 and 1999 - Practice Area: Insolvency
Demite Ltd v Protec Health Ltd,  BCC 638
Mr Justice Park considered the application of s.320 CA 1985 (substantial property transactions) to a sale by an Administrative Receiver.
He concluded that because an Administrative Receiver acts as an agent of the company, the sale was therefore “by” the company and required shareholder approval. Mr Justice Park believed that the express exception provided for transactions involving a company in Compulsory Liquidation or in CVL meant that Parliament had intended that the rule not be extended to sales by Receivers.