Wright v Wright 2024 SLT (SAC) 257: The debts of a limited company upon dissolution
CPD 1 hour
PEAT Outcome - Relevant legal knowledge
OBJECTIVES
“What happens to the debts of a limited company upon dissolution?” was the opening question posed by the Appeal Sheriff in Wright v Wright 2024 SLT (SAC) 257. In this case, the pursuer sought to enforce a standard security against two individuals. The relevant debt was guaranteed by another company (also dissolved), and secured by a standard security granted by the two individuals against whom the action had been brought. The pursuer sought to enforce that standard security, even though the companies were dissolved. The court ultimately held that the companies would have to be restored to the register in order for the standard security to called up.
This decision centres around the application of section 1032(1) of the Companies Act 2006, where the court is empowered to place companies “in the same position (as nearly as may be) as if the company had not been dissolved or struck off the register”.
This update will discuss: the decision in Wright v Wright; the provisions of the Insolvency Act 1986 which might allow a creditor to defer the date of dissolution to avoid the issues faced in Wright; and, briefly, the prescription issues which might arise in similar circumstances.
PARTICIPANTS
This Zoom webinar is aimed solicitors and trainee solicitors. Insolvency practitioners and professionals working in insolvency law.
SPEAKER
Jamie McGowan, Advocate, Axiom Advocates.
Jamie specialises in Public Law and Commercial law. Jamie called to the bar as Lord Reid Scholar. In private practice, he dealt with a variety of commercial disputes. Jamie has appeared in Sheriff Courts across Scotland and he has also assisted with various planning and insolvency matters at the Court of Session.
Prior to calling to the bar, Jamie began his doctoral studies in constitutional law at the University of Glasgow, where he is writing a thesis on the subject of judicial review reform and the equitable jurisdiction of the Court of Session. In his research and practice, he also takes a particular interest in litigation relating to ecclesiastical law and Freedom of Religion or Belief. He has presented at a number of international conferences on Public Law and Human Rights. He is well-equipped to assist clients with public law proceedings of any kind.
Jamie also has a well-established practice dealing with executry matters. He has experience in contentious executry litigation in the Sheriff Courts and the Court of Session and can ably advise on any issues relating to charities and trusts.
Jamie has also assisted with various intellectual property cases and has experience dealing with interim orders in relation to trademark and copyright disputes.
Jamie is also a tutor at the University of Edinburgh in Public Law and Commercial Litigation Jamie speaks French and Italian.
