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EWHC limits IA 1986 ss 220-221: Luxembourg SICAV sub-fund not an 'unregistered company'; petitioner not a contingent creditor (East Riding v KMG)

Published on: 18 June 2024

Published by a LexisNexis Restructuring & Insolvency expert
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East Riding of Yorkshire Council as administrating authority of the East Riding Pension Fund v KMG SICAV-SIF-SA [2024] EWHC 1069 (Ch) What are the practical implications of this case?

While numerous decisions explore how IA 1986, ss 220 and 221 operate, there is comparatively little guidance on what amounts to an ‘unregistered company’ and how far that concept extends. IA 1986, s 220(1) states that, for this Part, an “unregistered company” includes any association and any company, save for a company registered under the Companies Act 2006 in any part of the United Kingdom. The judgment offers a significant examination of how that wording applies to an entity that is neither an association nor a company lacking UK registration, yet which may exhibit certain corporate features. The court was invited to treat the statutory definition as non-exhaustive, the word ‘includes’ being deployed to broaden the category to capture bodies that would not naturally be read into the expression. This has practical resonance wherever an entity resembles a company in substance but does not fall squarely within the ordinary meaning of the term, prompting the court to assess whether that Part may bite...

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