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Case study

The one where the
failure to check the articles of association leading to an invalid Administration.

Advice was provided to creditors of a debtor company that was placed into Administration.  It was alleged it was placed into Administration to avoid the debt being paid.  Advice was provided in relation to challenging the administrators assisting the debtor company. 

In this particular case, two issues were raised by the clients.  Firstly relating to administrators failing to achieve their statutory objective in office and administration, to enable an argument to reverse the decision of the company into administration.  

Secondly advice was provided to creditors in relation to the conduct of administrators. It was alleged that they failed to ensure that a meeting of directors at which a vote was taken to appoint administrators was quorate i.e. the correct minimum number of directors in attendance.  The creditors challenged the administration on the basis of the inquorate meeting.  The case succeeded in the Court of Appeal so to nullify all actions taken by administrators in the administration and deprive them of remuneration.  This led to the client being able to enforce their debt and recover their costs

  • Case Study
  • Sector
    Real Estate
  • Service

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