A recent Court of Appeal judgment in Enviroco Limited v Farstad Supply A/S [2009] EWCA Civ 1399, [2009] All ER (D) 206 (Dec) initially caused some consternation in legal and banking circles.
A recent Court of Appeal judgment in Enviroco Limited v Farstad Supply A/S [2009] EWCA Civ 1399, [2009] All ER (D) 206 (Dec) initially caused some consternation in legal and banking circles.
The Court of Appeal overturned a decision reached by the High Court at first instance concerning whether a company was a “subsidiary” for the purposes of the Companies Act 1985 (the 1985 Act) in circumstances in which its holding company charged the shares it held in the subsidiary to a bank. We understand that an application has been made to the Supreme Court for leave to appeal the decision but no hearing date has yet been set.
Practically, this will only affect subsidiary companies; (i) that have more than one shareholder, or; (ii) in respect of which the controlling shareholder has acquired controlling rights (whether relating to the majority of the voting rights or the ability to appoint/remove directors) by way
