Equitable Life Assurance Society, Re [2002] EWHC 140 (Ch) (8th February, 2002)

Equitable Life Assurance Society, Re [2002] EWHC 140 (Ch) (8th February, 2002)

The classes of creditors were properly constituted as their rights were sufficiently similar to consult together; the scheme was a genuine compromise with fair value for both GAR and Non-GAR policy-holders; statutory and procedural requirements were met; and the scheme was fair and reasonable, warranting the court's sanction.

Citation
[2002] EWHC 140 (Ch)
Parties
Petitioner: Equitable Life Assurance Society; Objectors/representatives of Policy Holders: Various policy-holders (including Mr Rodney Allen, Mr Nicolas Bellord, Mr Ravindra Bountra, Mr Paul Braithwaite, Mr Michael Josephs, Mr John MacLeod, Mr Brian Millo, Mr David Stonebanks, Mr Arthur White (by Mr Charles Oke), Mr Christopher Whitmey)
Jurisdiction
England and Wales
Procedural Posture
Companies Court Petition (scheme of Arrangement) / Sanction Hearing Under Section 425 Companies Act 1985
Outcome
Scheme of arrangement sanctioned.
Legal Topics
Scheme of Arrangement, Compromise With Creditors, Class of Creditors, Policy Holder Rights, Guaranteed Annuity Rates (gar), Mis Selling Claims
Company Law Insurance Law Scheme of Arrangement Compromise With Creditors Class of Creditors Policy Holder Rights Guaranteed Annuity Rates (gar) Mis Selling Claims

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Parties

Equitable Life Assurance Society

Petitioner

Various policy-holders (including Mr Rodney Allen, Mr Nicolas Bellord, Mr Ravindra Bountra, Mr Paul Braithwaite, Mr Michael Josephs, Mr John MacLeod, Mr Brian Millo, Mr David Stonebanks, Mr Arthur White (by Mr Charles Oke), Mr Christopher Whitmey)

Objectors/representatives of Policy Holders

Procedural Posture

Companies Court Petition (scheme of Arrangement) / Sanction Hearing Under Section 425 Companies Act 1985

Legal Issues

  1. 1 Whether the proposed classes of creditors for the scheme of arrangement were correctly constituted under section 425 Companies Act 1985
  2. 2 Whether the scheme constitutes a proper compromise or arrangement within the meaning of the Act
  3. 3 Whether the statutory requirements for convening and conducting meetings were complied with

Ratio Decidendi

The classes of creditors were properly constituted as their rights were sufficiently similar to consult together; the scheme was a genuine compromise with fair value for both GAR and Non-GAR policy-holders; statutory and procedural requirements were met; and the scheme was fair and reasonable, warranting the court's sanction.

Court Disposition

Scheme of arrangement sanctioned.

Orders

  • The scheme of arrangement between the Society and its creditors is sanctioned under section 425 Companies Act 1985.
  • The failure to send documents to certain policy-holders due to administrative error or postal suspension does not invalidate the meetings or the scheme.