Lord Mandelson takes Capital of Culture fund to court

The Secretary of State for Business, Innovation & Skills has presented a petition in the High Court to wind up European Property Management Ltd based in Penny Lane, Liverpool in the public interest.

The company, incorporated in 2006, sold shares in itself to the general public, with the intention of raising funds to invest in property in cities with upcoming European Capital of Culture status, thereby benefiting from a surge in property values associated with the award.

The petition to wind up the company was presented following an investigation carried out by Companies Investigation Branch under section 447 of the Companies Act 1985 (as amended).

The Official Receiver was appointed provisional liquidator of the company in February 2010. The role of the provisional liquidator is to protect assets in the possession or under the control of the company pending the determination of the petition. The provisional liquidator also has the power to investigate the affairs of the company insofar as it is necessary to protect the assets including any third party or trust monies or assets in the possession of or under the control of the company.

The case is now subject to High Court action and a hearing has been scheduled for 11 May 2010.