Sova was Financial Conduct Authority investment broker providing services to institutional and corporate clients trading in Russian markets. US UK and EU sanctions combined with Russian countermeasures rendered Sova cash flow insolvent and trapped Russian securities
Key Points - - This application was brought in the wake of sanctions imposed by the United Kingdom, United States and European Union in response to the Russian invasion.
UK Supreme Court affirmed directors' duty to consider creditors' interests when company is bordering on insolvency. A balancing exercise must take place between creditor and shareholder interests. The closer to insolvency, the more weight given to creditors' interests.
Key Points - - The UK Supreme Court has affirmed directors' duty to consider creditors' interests. - The timing for the duty to be engaged is pushed back.