Vol 17 (2020) - Issue 5

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Re Akkurate Ltd (in Liquidation) [2020] EWHC 1433 (Ch)

Synopsis
The High Court decision in Re Akkurate Ltd (In Liquidation) ('Re Akkurate') provides clarity on recent conflicting authorities of the High Court as to whether an order for the production of documents under s.236(3) of the Insolvency Act 1986 (the 'Act') has extraterritorial effect solely on the basis of domestic insolvency law.

In Re Akkurate, Sir Geoffrey Vos C (the 'Chancellor') granted an application made by liquidators requiring the respondent companies to produce certain documents in their possession relating to the company in liquidation in circumstances where the companies were incorporated and operated from Italy. In doing so, while the Court found that the power to require the production of documents under s.236(3) did not have extraterritorial effect in its own right, it held that European Council Regulation 1346/2000, where it applies, can and does extend the territoriality of purely domestic insolvency provisions. This, in turn, permitted the Court to make orders under s.236(3) against EU resident parties.