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High Court approves decision to wind up sponsoring employers of pension scheme (Brass Trustees v Goldstone)

Published on: 09 August 2023
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Article summary

Pensions analysis: The High Court has approved the decision of Brass Trustees Ltd (the trustees) who were the trustees of the Biwater Retirement and Security Scheme (the Scheme), to issue petitions to wind up the Scheme’s sponsoring employers, Biwater Holdings Ltd (BHL) and Biwater International Ltd (together Biwater). In approving the decision of the trustees, the court acknowledged the trustees’ recognition of the momentous consequences of deciding to place Biwater in a liquidation process with a view to the Scheme being wound up, including Biwater staff losing their jobs and the financial impact on Scheme members. The court also recognised that it had a limited role in what it termed a ‘blessing application’, whereby trustees seek approval that the proposed exercise of their powers is lawful and does not infringe their duty to act as ordinary, reasonable and prudent trustees might act. This includes ignoring irrelevant, improper or irrational factors. Written by Rowena Wisniewska Sethi, barrister...

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