English High Court Follows BVI Case, Lau V Chu, To Confirm The Test For Just And Equitable Winding Up

• Published date: 21 April 2022
• Law Firm: Harneys
• Author: Ms Megan Elms and Peter Ferrer

In the recent decision in Re Klimvest Plc[2022] EWHC 596 (Ch), HHJ Cawson QC, sitting as a Judge of the English High Court, ordered that the respondent company, Klimvest, be wound up on just and equitable grounds pursuant to section 122(1)(g) of the Insolvency Act 1986. In his judgment, he drew heavily on the Privy Council case of Lau v Chu[2020] UKPC 24, which reinstated the BVI Commercial Court's first instance decision and endorsed the initial findings of Justice Kaye.

The petitioner was a minority shareholder in the company, one of its founding members, and its former director. He sought to wind up the company on multiple grounds, including that following the sale of the company's business and assets, the company had lost its...