A liquidator of a company in a group who proposes to use that company's surplus funds to finance litigation by another company in the group must demonstrate, by independent assessment of the funding company's separate interests, that the funding arrangement is expedient with reference to the funding company's own winding up, compared with ordinary investment under s 543. A committee of inspection cannot consent to what would otherwise be a breach of fiduciary duty by the liquidator; such authorisation must be sought from the court under its inherent jurisdiction. Section 532(2) permits the court to grant leave to continue acting as liquidator where a disqualifying circumstance arises after appointment.
The full text is available to signed-in members, including the 75 later cases that cite this judgment.
3 of the 75 citing cases carry a classified treatment. How each court treated it is available to signed-in members.