Insolvency Act 1986, section 154

Adjustment of rights of contributories

Part IV Winding Up of Companies Registered under the Companies Acts

The court shall adjust the rights of the contributories among themselves and distribute any surplus among the persons entitled to it.

Cases considering section 154 3

The Joint Administrators of LB Holdings Intermediate 2 Limited v The Joint Administrators of Lehman Brothers International (Europe) and others

[2017] UKSC 38 · 17 May 2017

The requirement to adjust contributories' rights and distribute any surplus reinforced the incompatibility of allowing a company to prove speculatively for future calls before liquidation. (see paras [132]; [163])

Scott-Hake & Anor v Frost & Anor

[2020] EWHC 3677 (Ch) · 30 January 2020

Confirms that section 154 provides for adjustment among contributories and distribution of any surplus where the statutory fund exceeds the liabilities and winding-up costs.

Lehman Brothers International (Europe) & Ors, Re

[2014] EWHC 704 (Ch) · 14 March 2014

Confirms the court’s duty to adjust contributories’ rights and distribute any surplus. (see para [146])

What each judgment says about section 154 is in the case-law panel in the full Act.

Amendments and notes

1 notes from legislation.gov.uk

Modifications

  1. C431S. 154 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 103, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 2