Liquidator is not an officer of the company

The Isle of Man Court has issued its latest judgment in the long running Broadsheet LLC winding-up proceedings.

On 30 September 2026, the Island’s Chief Justice, His Honour Deemster Corlett, issued his judgment in Re Broadsheet LLC on the misfeasance, misapplication and breach of trust application brought by Broadsheet’s current liquidator (Gordon Wilson) against its former liquidator (Roger Harper) (the Misfeasance Application). The Misfeasance Application was made pursuant to section 260 of the Companies Act 1931 (the 1931 Act), the Isle of Man equivalent to section 212 of the UK’s Insolvency Act 1968.

Misfeasance claims by liquidators against former liquidators are exceedingly rare both in onshore and offshore jurisdictions. The Court ordered Roger Harper to restore several million dollars to the assets of Broadsheet on account of his misfeasance and misapplication of Broadsheet funds over a prolonged period of time.

A critical issue in this case was whether or not Roger Harper was able to avail of the relief from liability provision of the 1931 Act. Section 337 of the 1931 Act confers a power on the Court to grant relief from liability in certain circumstances. By virtue of section 337(4), the Court can relieve directors, managers and officers of a company from liability under section 260.

The question for the Court was whether a liquidator is an “officer of the company” for the purposes of section 337. His Honour Deemster Corlett agreed with the submissions made by Advocate Tom Maher (acting for the current liquidator) that a liquidator is not an “officer of the company” for these purposes. The Court followed the obiter comments of the UK’s Supreme Court in R (on the application of Palmer) v Northern Derbyshire Magistrates’ Court [2023] UKSC 38 which overturned the decisions in Re Powertrain Ltd [2015] EWHC 3998 (Ch), Re Home Treat Ltd [1991] BCLC 705 and Re X Company Ltd [1907] 2 Ch 92 which had long established that a liquidator was an officer of a company.

This judgment brings welcome clarity to this area of law in the Isle of Man and this judgment will likely be of interest to insolvency practitioners and insolvency lawyers in the offshore world.

A link to the judgment is here.

Advocate Tom Maher acted for the successful party, the Liquidator of Broadsheet LLC, Mr Gordon Wilson.

For more information on how Maher Law’s specialist dispute resolution team can assist in relation to Isle of Man insolvency and other Chancery litigation, please contact Tom Maher at tom@maher.im.

12 October 2026

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