Vol 23 (2026) - Issue 1

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The Supreme Court Rules on the Scope of Section 423 of the Insolvency Act 1986: El-Husseiny & another v Invest Bank PSC [2025] UKSC 4

Synopsis
On 19 February 2025, the Supreme Court (Lord Hodge, Lord Hamblen, Lord Stephens, Lady Rose and Lord Richards) handed down its judgment in El-Husseiny
and Another v Invest Bank PSC, unanimously dismissing the appeal brought by Alexander Ahmad El Husseiny and Ziad Ahmad El-Husseiny (the 'Appellants'), in sodoing confirming that section 423 of the Insolvency Act 1986 (the 'Act') may apply to transactions where a debtor orchestrates the transfer of assets owned by a company they control (as opposed to assets they personally own), thereby reducing or eliminating the value of their shares in the company to the detriment of creditors.