Akers v Samba Financial Group

The Supreme Court considered an appeal by Samba Financial Group against an order of the Court of Appeal that set aside a stay of proceedings brought by Saad Investments Co Ltd in liquidation and its Joint Official Liquidators against Samba. The liquidators claimed that Samba held shares in Saudi Arabian banks on trust for Saad Investments Co Ltd and that the transfer of the shares by the trustee to Samba was void under section 127 of the Insolvency Act 1986. The Supreme Court held that there was no disposition of any rights of Saad Investments Co Ltd in relation to the shares by virtue of their transfer to Samba. The court found that, while Saad Investments Co Ltd had equitable proprietary interests in the shares, the transfer by the trustee of the legal title to the shares to Samba did not constitute a disposition of those interests. The court concluded that section 127 of the Insolvency Act 1986, which addresses dispositions of a company's property after the commencement of winding up, did not apply to this situation because there was no transfer by a disponor to a disponee of the relevant property. The Supreme Court allowed the appeal and set aside the order made by the Court of Appeal, declaring that there was no disposition of any rights of Saad Investments Co Ltd in relation to the shares by virtue of their transfer to Samba.