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Client Type: Individual

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

The one with the aggressive creditor causing insolvency

Advised a director of a company that had its secured debt due to a large retail clearing bank transferred to a hedge fund.  The hedge fund immediately placed the company into administration without discussion or warning.  Efforts to resolve issues ignored by the hedge fund.  The director of the company was restricted from obtaining refinance due to the administration of the company and sought advice on how to solve the issues. 

On our advice, the director of the company challenged the administrators on the basis that the assets exceeded the debts due from the company and therefore statutory objectives could not be met. 

After corresponding with the administrators, resolution was achieved to see the company handed back to the director.

Contact details

Phone: 0121 796 4020


Fax: 0843 216 4240


Tenet Compliance & Litigation Limited
Sterling House, 71 Francis Road, Edgbaston, Birmingham B16 8SP


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Tenet Compliance & Litigation Limited. Registered Office, Sterling House, 71 Francis Road, Edgbaston, Birmingham B16 8SP. Registered in England and Wales. Registered No: 09776405. Authorised and regulated by the Solicitors Regulation Authority. SRA Identification No. 626562.

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