Court classes organisation as a company allowing its £20m pension deficit to be covered by government scheme
A judge has ordered that the Construction Confederation be wound-up under the 1986 Companies Act.
Trustees of the Confederation had issued a petition to the court for the organisation to be liquidated after a £20m deficit was uncovered in its pension fund earlier this year.
The CC, an unincorporated body, needed to be classed as a company so it could be shut down and covered by the government’s Pension Protection Fund (PPF).
Mr Justice Purle said today that the organisation had operated on a commercial basis, and he was satisfied that it should be recognised as a company and liquidated.
“The prospect that this will allow the trustees to take advantage of the PPF scheme is now a very real one,” he said.
Members of the pension scheme faced losing up to 70% of their entitlement.
Several members of the public who attended the hearing appeared to weep with relief upon hearing the news, which may guarantee their future pensions are paid.
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