Michael Bowmer acted for the successful liquidator in the case of Qureshi v Association of Conservative Clubs Ltd [2019] EWHC 1165 (Ch) in which judgment was handed down yesterday.
The case involved a challenge by the Association of Conservative Clubs to the liquidator’s distribution of the surplus assets of a company registered under the Co-operative and Community Benefit Societies Act 2014 among its members.
The court upheld the liquidators’s interpretation of the company’s articles of association – comprising its rules registered with the Financial Conduct Authority – to the effect that on a members’ voluntary liquidation any surplus should be distributed among the members according to their rights and interests in the company.
The court also determined that in so far as there were any procedural irregulaties in the resolutions of the company leading to its winding up, caused by technical non-compliance with the quorum requirements in the rules, they were immaterial because they could be and had been corrected, and members of the company supported the steps which had been taken.
