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The importance of being just before you are generous: Transactions defrauding creditors and Invest Bank
Claims under s. 423 of the Insolvency Act 1986 have long been part of the insolvency practitioner’s and fraud lawyers’ respective toolkits. The recent decision of the Court of Appeal in Invest Bank PSC v Ahmad Mohammad El-Husseini and Ors [2023] EWCA Civ 555 has strengthened the terms of the provision and provides an enhanced weapon against those debtors who use holding vehicles to house their assets behind a corporate veil, seemingly beyond the reach of creditors.
In this article, Kit Smith of Keidan Harrison considers the scope of s. 423, why it is so helpful to those claiming against fraudsters and how the decision in Invest Bank improves matters for claimants.