Trustees and claims under section 423 of the Insolvency Act 1986: lessons from Invest Bank

Tiffany Scott KC has co-authored an article for Trusts & Trustees with Emma Hargreaves (Serle Court) entitled, “Trustees and claims under section 423 of the Insolvency Act 1986: lessons from Invest Bank”.

Abstract

In Invest Bank PSC v El-Husseini and others [2024] EWHC 2976 (Comm), the Claimant alleged that a property had been transferred to a trust with the purpose of prejudicing the Claimant as the settlor’s creditor. The property had been sold and the proceeds distributed to the beneficiaries, so the Claimant sought an order under ss.423-425 of the Insolvency Act 1986 that the trustee be personally liable to pay the value of the trust property to the Claimant. This note considers the judgment of the Commercial Court, which dismissed the claim, and issues for trustees faced with such claims.

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