The Court of Appeal has confirmed the High Court's decision that the "Balance Sheet Test" (for whether a company is unable to pay its debts under Section 123(2) of the Insolvency Act 1986) cannot be reduced to a single formula or set of principles that apply to all companies.
The Balance Sheet Test forms part of the provisions that regulate when a company may be compulsorily wound up by the Court.
United Kingdom, Insolvency & Restructuring, Litigation, Mills & Reeve LLP, Audit, Debt, Liability (financial accounting), Liquidation, Balance sheet, Public limited company, Insolvency Act 1986 (UK), Trustee, Court of Appeal of England & Wales, High Court of Australia