We helped a trustee in bankruptcy who had a 5% shareholding in a family property investment company. The bankrupt became so in 2012, and the first trustee in bankruptcy did not deal with our client’s shareholding. The property investment company then approached the official receiver with an offer to buy the shares in 2019, resulting in our client’s appointment.
We had to deal with several issues during this case, including:
a) a claim by the bankrupt’s mother that she is the beneficial owner of the shares
b) a claim that the company has paid the bankrupt’s dividends to his mother since 2012
We helped our client understand the position of the shares and how to deal with them for the creditors’ benefit. The matter settled on confidential terms, with a sale of the shares and settlement of the dividends paid.