Re Harris Simons Construction Ltd, 1989 BCLC 202, 1989 1 WLR 368, (Ch)
Citation:Re Harris Simons Construction Ltd, 1989 BCLC 202, 1989 1 WLR 368, (Ch)
Rule of thumb:How does a company defend a winding up/liquidation order? This turns on accountant’s reports. Basically, if it is 75% certain the business will fail, it will be liquidated.
Judgment:
‘The Judge therefore required that on a scale of probability of 0 (impossibility) to 1 (absolute certainty) the likelihood of success should be more than 0.5 . I naturally hesistate to disagree with Gibson J since he had the benefit of adversarial argument. But ... I should say that in my view he set the standard of probability too high... It cannot be a misuse of language to say that something is likely without intending to suggest that the probability of it happening exceeds 0.5, as in, “I think that favourite Golden Spurs at 5-1 is likely to win the derby”... I think it was to indicate that a lower threshold of persuasion was needed in the latter case than the former...’
Warning: This is not professional legal advice. This is not professional legal education advice. Please obtain professional guidance before embarking on any legal course of action. This is just an interpretation of a Judgment by persons of legal insight & varying levels of legal specialism, experience & expertise. Please read the Judgment yourself and form your own interpretation of it with professional assistance.