Eurodis Electron Plc & Ors, Re The Insolvency Act 1986

Eurodis Electron Plc & Ors, Re The Insolvency Act 1986

The English court cannot ignore the dissolution of a foreign company under its local law for the purposes of continuing administration, as there is no statutory basis for such an implication. However, the court can wind up a dissolved foreign company under sections 221(5)(a) and 225 of the Insolvency Act 1986 and appoint the administrators as liquidators, with their expenses to be paid as expenses of the liquidation.

Parties
Applicant: Nicholas Guy Edwards; Applicant: Nicholas James Dargan; Applicant: Neville Barry Kahn; Subject Company: Eurodis Texim Electronics SA
Jurisdiction
England and Wales
Judgment Date
19 April 2011
Procedural Posture
Insolvency Administration Application / Judgment on Application for Directions and Alternative Winding Up Order
Outcome
winding up order granted; application for declaration refused
Legal Topics
Cross Border Insolvency, Recognition of Foreign Insolvency Proceedings, Winding Up of Dissolved Foreign Companies, Administrators' Powers After Dissolution
Insolvency Law Private International Law Cross Border Insolvency Recognition of Foreign Insolvency Proceedings Winding Up of Dissolved Foreign Companies Administrators' Powers After Dissolution

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Parties

Nicholas Guy Edwards

Applicant

Nicholas James Dargan

Applicant

Neville Barry Kahn

Applicant

Eurodis Texim Electronics SA

Subject Company

Procedural Posture

Insolvency Administration Application / Judgment on Application for Directions and Alternative Winding Up Order

Legal Issues

  1. 1 Whether English administrators can continue to act after dissolution of a foreign company under local law
  2. 2 Whether the English court should ignore the dissolution of a Belgian company for the purposes of ongoing English administration
  3. 3 Whether a winding up order can be made in England for a company dissolved abroad

Ratio Decidendi

The English court cannot ignore the dissolution of a foreign company under its local law for the purposes of continuing administration, as there is no statutory basis for such an implication. However, the court can wind up a dissolved foreign company under sections 221(5)(a) and 225 of the Insolvency Act 1986 and appoint the administrators as liquidators, with their expenses to be paid as expenses of the liquidation.

Court Disposition

winding up order granted; application for declaration refused

Orders

  • Winding up order made in respect of Eurodis Texim Electronics SA under section 221(5)(a) of the Insolvency Act 1986.
  • Administrators appointed as liquidators of the company.