An article from Out-Law on 6 March reported on a recent case, saying that even lawfully-paid dividends can be challenged in the courts as acts designed to deprive creditors of assets of a company, the Court of Appeal has ruled. It said that a dividend payment that was the subject of a dispute between Sequana and BAT Industries was a ‘transaction at an undervalue’, but not in this case a breach of the directors’ duty to have regard to creditors’ interests.
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