The Resilience of the Principle Against Divestiture in Mayhew v. King

Corporate Rescue and Insolvency, Vol. 3, p. 159, 2010

9 Pages Posted: 11 Sep 2010

Date Written: September 11, 2010

Abstract

The court in Mayhew v. King 2010] EWHC 1121 (Ch) failed to recognise that the principle against divestiture has nothing to do with the principle of pari passu distribution. However, the court’s actual application of the principle is in many respects a healthy repudiation of the Court of Appeal’s approach in Perpetual Trustee Company v. BNY Corporate Trustee Services [2009] EWCA Civ 1160. It is now down to the Supreme Court to set the principle on a trajectory toward conceptual stability and practical justice.

Keywords: Principle Against Divestiture, Anti-Deprivation Principle, Principle of Pari Passu Distribution, Flawed Asset, Condition Precedent

JEL Classification: K10, K11, K12, K19, K20, K29, K30, K39

Suggested Citation

Ho, Look Chan, The Resilience of the Principle Against Divestiture in Mayhew v. King (September 11, 2010). Corporate Rescue and Insolvency, Vol. 3, p. 159, 2010, Available at SSRN: https://ssrn.com/abstract=1675486

Look Chan Ho (Contact Author)

Des Voeux Chambers ( email )

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