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
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  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: Suggested Citation