Help for a creditor

[Ian M]

I am a creditor of a company in insolvent creditors voluntary liquidation. The company's assets go no way towards covering the various debts. This company held a parcel of land with approval for housing development which it sold to the original director before insolvency. Would the IP be able to reverse this sale and release the capital to pay the creditors?
Also, the company in liquidation held two share in a separate limited management company which it has transferred to the original owner. Should not the other 5 shareholders been given preferential rights to acquire these shares? (Total of 7 shares)

 

[Matt Tomkin]

Limited knowledge on the reversal of the land. But on the second point, it completely depends on what was written in the shareholders agreement to decide this one. Did they have one in place?

 

[Gavin Bates]

Hi

The liquidator would have to prove that the transfer was either a transaction at an undervalue or a preference before he could reverse the land back to the Company. Do you have any details on the actual sale/value?

Mark's point on the share transfer is valid if there is a shareholders agreement. My experience is that very few shareholders have a shareholders agreement in place. In this case, you need to go back to the articles. Most likely the case will be that the shares should have been at least offered to all shareholders.

Regards

Gavin

 

[Ian M]

Limited knowledge on the reversal of the land. But on the second point, it completely depends on what was written in the shareholders agreement to decide this one. Did they have one in place?

Thank you. I am not aware of any shareholders agreement

 

[Ian M]

Hi

The liquidator would have to prove that the transfer was either a transaction at an undervalue or a preference before he could reverse the land back to the Company. Do you have any details on the actual sale/value?

Mark's point on the share transfer is valid if there is a shareholders agreement. My experience is that very few shareholders have a shareholders agreement in place. In this case, you need to go back to the articles. Most likely the case will be that the shares should have been at least offered to all shareholders.

Regards

Gavin

Thank you

We have the details of the land sale amount which seems to us to be undervalued given that there is existing approval for 2 upper market properties (sale potential circa £500k in this area).
According to Companies House, model articles were adopted at company foremation.

 

[Mr D]

Thank you

We have the details of the land sale amount which seems to us to be undervalued given that there is existing approval for 2 upper market properties (sale potential circa £500k in this area).
According to Companies House, model articles were adopted at company foremation.

Then tell the IP that.

 

[Lisa Thomas]

You need to pass your concerns to the IP so they can investigate the position.

 

[UK Contractor Accountant]

You have set up your own property development company.

Do you have an interest in this parcel of land with planning?

 

[Ian M]

You have set up your own property development company.

Do you have an interest in this parcel of land with planning?

Yes

 

[UK Contractor Accountant]

How do you know the land has been undervalued?

has there been a plot of land sold nearby you can gauge the sale price with?

In the south its roughly £800K- £1M per acre.

 

[Ian M]

How do you know the land has been undervalued?

has there been a plot of land sold nearby you can gauge the sale price with?

In the south its roughly £800K- £1M per acre.

Before he transferred the land to himself, and liquidated his company, he had asked £400,000.00 when a local builder offered to buy it and complete the development

 

[UK Contractor Accountant]

https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch25-36/Chapter31/part4A/Part 3/Part 3.htm