Vol 15 (2018) - Issue 5

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Milne, Liquidator of Premier Housewares (Scotland) LLP v Rashid [2018] CSOH 23

Introduction
The Court of Session in Scotland recently handed down its judgement following an evidential hearing in a claim brought by a liquidator of a limited liability partnership ('LLP') in which the liquidator sought a declaration pursuant to section 214A of the Insolvency Act 1986 against a former member of the LLP that the member was liable to make a contribution to the assets of the LLP. The Court examined each of the three limbs of the statutory test which require to be met to make out a successful claim and considered whether, on the evidence, the LLP was unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986 (the '1986 Act').