Practice and Procedure

BANK OF INDIA v CHRISTOPHER MORRIS & 6 ORS (2005)

PUBLISHED June 22, 2005
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The paramount purpose of the Insolvency Act 1986 s.213 was to compensate those who had suffered loss as a result of the fraudulent trading and it would defeat the effectiveness of the section in practice if liability were limited to those cases in which the board of directors of an "outsider" company was actually privy to the fraud of the company. The application of s.213 required a special rule of attribution in order to make its self-evident policy effective.

[2005] EWCA Civ 693

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