Enviroco Ltd v Farstad Supply A/S – WLR Daily

Enviroco Ltd v Farstad Supply A/S [2011] UKSC 16; [2011] WLR (D) 126

“When a Scottish holding company’s entire shareholding in one of its subsidiary companies had been pledged to a Scottish creditor as security and, pursuant to Scots law, the creditor had become the registered shareholder, the subsidiary company was, for the purposes of section 736 of the Companies Act 1985, no longer a subsidiary of the holding company.”

WLR Daily, 6th April 2011

Source: www.iclr.co.uk

Please note that once a case has been fully reported in one of the ICLR series the corresponding WLR Daily summary is removed.

1 Response to “Enviroco Ltd v Farstad Supply A/S – WLR Daily”

  1. 1 Alexander Amatosi April 19, 2011 at 10:26 pm

    This case perfectly illustrates the very real differences between Scots and English law. If a similar situation had occurred in England and Wales, the bank’s equitable charge on the secured shares would not pass the ownership of them from the debtor company. I wonder if this decision will have an impact on larger Scottish companies seeking to rase finance secured on a subsidiary?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

April 2011
« Mar   May »


%d bloggers like this: