In the matter of Torotrak Plc (in liquidation)

In the matter of Torotrak Plc (in liquidation)

The court has no power to limit distribution of surplus assets to only the top shareholders; distribution must be made to all members according to their rights and interests. However, the court may direct cost-effective steps for tracing members, including writing to last-known addresses, advertising in the London Gazette, and using the liquidators' portal, with a cut-off date for claims. The liquidators' remuneration cap may be increased for additional work, and prospective relief is granted for distribution in accordance with the order.

Parties
Applicant: Scott Christian Bevan; Applicant: Simon David Chandler; Company: Torotrak Plc (in Liquidation)
Jurisdiction
England and Wales
Judgment Date
05 January 2023
Procedural Posture
Insolvency Application / Judgment on Application for Directions and Remuneration Approval
Outcome
Application granted in part; directions given for distribution and remuneration.
Legal Topics
Distribution of Surplus Assets, Liquidator Remuneration, Tracing Members, Court Directions in Liquidation
Insolvency Company Law Distribution of Surplus Assets Liquidator Remuneration Tracing Members Court Directions in Liquidation

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Parties

Scott Christian Bevan

Applicant

Simon David Chandler

Applicant

Torotrak Plc (in Liquidation)

Company

Procedural Posture

Insolvency Application / Judgment on Application for Directions and Remuneration Approval

Legal Issues

  1. 1 Whether the liquidators can limit distribution of surplus to top shareholders
  2. 2 What steps are proportionate for tracing members
  3. 3 How liquidators' remuneration should be determined for distribution

Ratio Decidendi

The court has no power to limit distribution of surplus assets to only the top shareholders; distribution must be made to all members according to their rights and interests. However, the court may direct cost-effective steps for tracing members, including writing to last-known addresses, advertising in the London Gazette, and using the liquidators' portal, with a cut-off date for claims. The liquidators' remuneration cap may be increased for additional work, and prospective relief is granted for distribution in accordance with the order.

Court Disposition

Application granted in part; directions given for distribution and remuneration.

Orders

  • Liquidators to write to known shareholders at last-known addresses inviting claims within a specified period.
  • Single advertisement to be placed in the London Gazette with similar cut-off date and information.