High Court clarifies legal position on limitation of liquidators’ liability

A High Court ruling has clarified the legal position on whether professional liquidators and/or their firms can limit their legal liability under the terms of a letter of engagement.

Laurence Pagden & Ors v Core VCT PLC & Ors - Find Case Law - The National Archives has important implications for insolvency practitioners and their professional services firms, who will all need to consider the terms on which they are engaged to act as liquidators as a result of the judgment.

The case arose from the solvent windings-up of three investment trusts in 2015, where later-appointed officeholders alleged the original asset sales were conducted at a substantial undervalue.