On the appointment of a liquidator, all the powers of the directors cease, except so far as the liquidation committee (or, if there is no such committee, the creditors) sanction their continuance.
Cases considering section 103 6
Condliffe & Anor v Sheingold
The court confirmed that a director’s powers cease when the company enters liquidation, but the fiduciary duty not to misappropriate company property continues. (see para [11])
Systems Building Services Group Ltd, Re
Used to confirm that entry into creditors’ voluntary liquidation does not itself remove directors from office. (see para [38])
Manhattan Coffee Investment Holding (in liquidation) v Stephen Mbugua Mwagiru (Mauritius)
The provision was cited comparatively in support of the cessation of directors’ powers in a voluntary liquidation. (see para [71])
- TayTime Limited v Secretary of State for Levelling Up, Housing and Communities & Ors
- Northamber PLC v Genee World Limited & Ors.
- Shinedean Ltd. v Alldown Demolition (London) Ltd & Anor
What each judgment says about section 103 is in the case-law panel in the full Act.