Kiss Cards Ltd, Re Smith & Ors v Lawson & Anor

Kiss Cards Ltd, Re Smith & Ors v Lawson & Anor

Mrs Lawson is liable to repay 50% of the value of lump sum and rent payments found to be transactions at an undervalue, as no credible evidence of consideration was provided and explanations for credits and reimbursements were unreliable or deceptive.

Source-derived case information.

Parties
Applicant: Martin Frederick Peter Smith; Applicant: Nicola Joanne Hawksley; Applicant: Kiss Cards Ltd (In Liquidation); Respondent: Simon James Lawson; Respondent: Catherine Lawson
Jurisdiction
England and Wales
Judgment Date
31 August 2016
Procedural Posture
Insolvency Application / Judgment
Outcome
Order for Mrs Lawson to repay £12,700 to the company in liquidation.
Legal Topics
Transactions at an Undervalue, Liquidation, Director Duties, Employee Remuneration, Connected Persons
Insolvency Company Law Transactions at an Undervalue Liquidation Director Duties Employee Remuneration Connected Persons

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Parties

Martin Frederick Peter Smith

Applicant

Nicola Joanne Hawksley

Applicant

Kiss Cards Ltd (In Liquidation)

Applicant

Simon James Lawson

Respondent

Catherine Lawson

Respondent

Procedural Posture

Insolvency Application / Judgment

Legal Issues

  1. 1 Whether payments made to Mrs Lawson constituted transactions at an undervalue under section 238 of the Insolvency Act 1986
  2. 2 Whether Mrs Lawson should repay the amount of those transactions to the company in liquidation
  3. 3 Whether lump sum and rent payments were gifts or justified reimbursements

Ratio Decidendi

Mrs Lawson is liable to repay 50% of the value of lump sum and rent payments found to be transactions at an undervalue, as no credible evidence of consideration was provided and explanations for credits and reimbursements were unreliable or deceptive.

Court Disposition

Order for Mrs Lawson to repay £12,700 to the company in liquidation.

Orders

  • Mrs Lawson to repay £12,700, representing 50% of lump sum and rent payments found to be at an undervalue.
  • Further hearing to be listed for handing down judgment and resolving any arising matters.