We at DMC Recovery are immensely proud to have been involved in a significant legal victory that reinforces the integrity of the insolvency process in the UK.
On 5 August 2024, the Court of Appeal handed down a landmark judgment in the case of Re JDK Construction Limited (in liquidation), Keegan v Bland and Mayo [2024] EWCA Civ 934. This decision marks a pivotal moment for insolvency practitioners, particularly concerning the reliance on a company’s register of members during voluntary liquidation.
Our team, represented by the distinguished Louis Doyle KC and Douglas Cochran, successfully defended the respondent liquidators in this crucial appeal. The case centred on an unresolved issue regarding the validity of written resolutions appointing liquidators, where the authenticity of stock transfer forms was in question. The Court of Appeal upheld the original decision of HHJ Hodge KC, albeit on different grounds, affirming that even when a stock transfer form is alleged to be a forgery, the register of members maintained under section 112 of the Companies Act 2006 remains conclusive as to the identity of the members at any given time.
This ruling is a significant win for insolvency practitioners across the UK, as it upholds the validity of written resolutions based on the company’s register of members, even in scenarios involving contested or forged share transfers. The judgment reinforces the legal principle that the register of members is a definitive record, providing a stable foundation for the orderly conduct of voluntary liquidations.
At DMC Recovery, we are dedicated to maintaining the highest standards of professionalism and integrity in our work. This case underscores our commitment to navigating complex legal challenges with skill and precision, ensuring that the insolvency process remains fair and transparent for all stakeholders involved.
We believe that this decision will have a lasting impact on the practice of insolvency law, providing clarity and certainty in an area that is crucial to the proper administration of company liquidations. We are pleased to have played a role in this important case and will continue to advocate for the rights and responsibilities of insolvency practitioners in the UK.
As we move forward, DMC Recovery remains committed to excellence in all aspects of our practice, and we look forward to continuing to serve our clients with the expertise and dedication that have become our hallmark.
