(1)Where a company is being wound up by the court, the liquidator may exercise any of the powers specified in Parts 1 to 3 of Schedule 4.
(2)Where the liquidator (not being the official receiver), in exercise of the powers conferred on him by this Act—
(a)disposes of any property of the company to a person who is connected with the company (within the meaning of section 249 in Part VII) or
(b)employs a solicitor to assist him in the carrying out of his functions,
he shall, if there is for the time being a liquidation committee, give notice to the committee of that exercise of his powers.
(3)The exercise by the liquidator in a winding up by the court of the powers conferred by this section is subject to the control of the court, and any creditor or contributory may apply to the court with respect to any exercise or proposed exercise of any of those powers.
Cases considering section 167 19
[2005] EWCA Civ 276 · 19 January 2005
Applies section 167 as part of the statutory basis for reviewing a liquidator’s exercise of powers; the judgment does not construe the underlying powers. (see paras [2]; [26]; [48])
Applies the court-control mechanism to a creditor’s challenge to a liquidator’s exercise or proposed exercise of statutory powers, supporting the creditor’s standing to pursue the application. (see paras [2]; [48])
[2001] EWCA Civ 244 · 16 February 2001
The court applied section 167(1) as empowering liquidators, with the sanction of the court or liquidation committee, to exercise the powers in Part 1 of Schedule 4, including compromising debts and claims. It held that the provision did not prevent ancillary liquidators from realising assets abroad, subject to practical territorial limits. (see unpaginated passage beginning “Section 167(1) of the Insolvency Act 1986”)
[1999] EWCA Civ 3046 · 31 July 1998Interprets
Requires court or liquidation committee sanction for a liquidator’s exercise of specified compromise powers in a court winding up. The settlement fell within this provision, so the liquidator had to obtain court sanction. (see Chadwick LJ, sections beginning “Where a company has been wound up by the court” and “The settlement agreement of 1 November 1996”)
Places the liquidator’s exercise of section 167 powers under the court’s control and permits a creditor or contributory to apply concerning that exercise. The provision governs a different, more deferential form of supervision from a sanction application under section 167(1)(a). (see Chadwick LJ, sections beginning “This was not a case within section 167(3)” and “Nothing that I have said”)
1 more judgment, and what each says about section 167, are in the
case-law panel in the full Act.