Two companies liquidated as one

The High Court has ordered that the liquidations of two related companies proceed together as if the companies were one under section 271(1)(b) of the Companies Act 1993.

In this case¹, both companies:

• had a common directorship and shareholding;

• were involved in the same business;

• operated as if they were one; and

• used each other’s bank accounts interchangeably.

The judge determined that, because both companies had effectively operated as one, and because creditors seemed confused about which company they had transacted with, it would not be possible to divide the funds held by the liquidator between the companies.

Accordingly, an order was made that the liquidations of each company proceed together as if they were one company.

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