FINBARR O’CONNELL & Ors v LPE SUPPORT LIMITED (IN COMPULSORY LIQUIDATION)

FINBARR O’CONNELL & Ors v LPE SUPPORT LIMITED (IN COMPULSORY LIQUIDATION)

The assignment was void for want of authority because it was executed without board approval, was contrary to LOG's interests, and both signatories knew of the lack of authority, with their knowledge attributable to LPE Support.

Parties
Applicant: Mr Finbarr O’Connell; Applicant: Mr Adam Henry Stephens; Applicant: Mr Colin Hardman; Applicant: Mr Lane Bednash; Respondent: LPE Support Limited
Jurisdiction
England and Wales
Judgment Date
07 July 2022
Procedural Posture
Insolvency Application / Judgment
Outcome
Assignment declared void for want of authority; attendant relief granted.
Legal Topics
Director Authority, Fiduciary Duty, Assignment of Rights, Ratification, Transaction at Undervalue
Company Law Insolvency Law Director Authority Fiduciary Duty Assignment of Rights Ratification Transaction at Undervalue

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Parties

Mr Finbarr O’Connell

Applicant

Mr Adam Henry Stephens

Applicant

Mr Colin Hardman

Applicant

Mr Lane Bednash

Applicant

LPE Support Limited

Respondent

Procedural Posture

Insolvency Application / Judgment

Legal Issues

  1. 1 Whether the assignment by LOG to LPE Support was void for want of authority
  2. 2 Whether the assignment was a transaction at an undervalue under s.238 Insolvency Act 1986

Ratio Decidendi

The assignment was void for want of authority because it was executed without board approval, was contrary to LOG's interests, and both signatories knew of the lack of authority, with their knowledge attributable to LPE Support.

Court Disposition

Assignment declared void for want of authority; attendant relief granted.

Orders

  • Assignment dated 28 April 2017 by LOG to LPE Support declared void.
  • Attendant relief as sought by applicants granted.