What is the deemed date of liquidation when moving from administration to creditors voluntary liquidation? Arti Vashisht Elliott reports
The effect of the Court of Appeal’s ruling in In the matter of Globespan Airways Limited (Formerly in Administration and now in Liquidation); In the matter of the Insolvency Act 1986 [2012] EWCA Civ 1159 handed down on 24 August 2012 is to alter the interpretation previously given on the effect of para 83 of Sch B1 to the Insolvency Act 1986 (para 83). It has been held that it is the date of registration of the conversion notice rather than the date of its receipt by the Registrar of Companies that is determinative. The case also resolves an issue left open since 2006 regarding an unforeseen gap period between administration and creditors voluntary liquidation (CVL).
Heart of the issue
At the heart of the issue is the procedure of moving from administration to liquidation under para 83. This provides that a notice in the prescribed form should be sent to, and registered by,
