Insolvency Act 1986, section 250

“Member” of a company

Part VII Interpretation for First Group of Parts

For the purposes of any provision in this Group of Parts, a person who is not a member of a company but to whom shares in the company have been transferred, or transmitted by operation of law, is to be regarded as a member of the company, and references to a member or members are to be read accordingly.

Definitions used in section 250 1

the company

2 Section 233B does not apply in relation to a contract for the supply of goods or services to a company (“the company”) where any of paragraphs 3 to 11 applies.

Defined in Sch.4ZZA para.2 · see it in the full Act

Cases considering section 250 3

Daniel McAteer v Hat & Mitre Plc (in creditors’ voluntary liquidation) & Ors

[2024] EWHC 1601 (Ch) · 25 June 2024Interprets

Interprets section 250 as deliberately extending the concept of member to an unregistered transferee of shares. That extended status made the appellant a contributory for the purposes of sections 112 and 147 (see paras [44]-[50]).

Warwick & Anor (Joint Liquidators)

[2017] EWHC 2610 (Ch) · 14 August 2017Limits

Limits the statutory extension treating transferees or persons receiving shares by operation of law as members to cases involving shares. It does not apply to membership of a company limited by guarantee. (see paras [20]-[23], [26])

In the matter of Torotrak Plc (in liquidation)

[2023] EWHC 115 (Ch) · 5 January 2023Defines

The court applies the wider insolvency definition of member, including persons to whom shares have been transferred or transmitted by operation of law. (see para [26])

What each judgment says about section 250 is in the case-law panel in the full Act.

Amendments and notes

1 notes from legislation.gov.uk

Modifications

  1. C908S. 250 excluded (E.W.) (31.1.2019) by The Further Education Bodies (Insolvency) Regulations 2019 (S.I. 2019/138), regs. 1(1), 22 (with regs. 1(2), 3(a)(ii))