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Authors April Knight and Pranita Varma
Defective execution and statutory protection: reconsidering s 44(5) CA 2006 after South Bank Hotel
The recent Court of Appeal judgment in South Bank Hotel Management Company Ltd v Galliard Hotels Ltd and others; Lodgeshine Ltd v South Bank Hotel Management Company Ltd (South Bank Hotel) adds to the case law on execution of documents under s 44(5) of the Companies Act 2006 (CA 2006).
The judgment confirms that only a purchaser acting in good faith can invoke CA 2006 s 44(5). However a purchaser who has actual knowledge that a document has not been signed in accordance with s 44(2) is not acting in “good faith”. The court also confirmed that while a lessor or mortgagor can be estopped from denying valid title the doctrine does not extend to valid execution.
Background
In South Bank Hotel the appellant ...
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