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Successful judgment for Philip Currie:

7 / 12 / 2021

Acting on behalf of the Claimant in a claim for the repayment of unlawful dividends and transactions at an undervalue, Philip Currie secured judgment against the Respondents in an oral judgment delivered at the end of trial. The unlawful dividends were declared by the Respondents as directors without interim accounts by which they could be justified, while the transaction at an undervalue claim concerned the receipt of funds from the Company which ought to have been paid by the Buyers under a share purchase agreement.

Of particular interest, the court agreed that the interpretation of the shareholders’ knowledge requirement for the repayment of unlawful dividends in s.847 of the Companies Act 2006 (as explained by reference to EU law in It’s a Wrap (UK) Ltd (In Liquidation) v Gula [2006] EWCA Civ 544) was not altered by Brexit or the European Union (Withdrawal) Act 2018.

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