Virtualpurple Professional Services Ltd, Re [2011] EWHC 3487 (Ch) (21 December 2011)

Virtualpurple Professional Services Ltd, Re [2011] EWHC 3487 (Ch) (21 December 2011)

Directors are not required to give notice of intention to appoint administrators to the company where the appointment is to take immediate effect and there is no qualifying chargeholder; even if such notice were required, failure to give it does not automatically invalidate the appointment.

Citation
[2011] EWHC 3487 (Ch)
Parties
Company: Virtualpurple Professional Services Limited; Applicant Director: Ms Williamson; Administrator: Mr Linton; Administrator: Mr Weber
Jurisdiction
England and Wales
Judgment Date
21 December 2011
Procedural Posture
Application for Declaration Regarding Validity of Administrator Appointment / Judgment After Hearing
Outcome
Declaration granted
Legal Topics
Administration Appointment, Notice Requirements, Validity of Administrator Appointment, Insolvency Act 1986 Interpretation
Insolvency Company Law Administration Appointment Notice Requirements Validity of Administrator Appointment Insolvency Act 1986 Interpretation

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Parties

Virtualpurple Professional Services Limited

Company

Ms Williamson

Applicant Director

Mr Linton

Administrator

Mr Weber

Administrator

Procedural Posture

Application for Declaration Regarding Validity of Administrator Appointment / Judgment After Hearing

Legal Issues

  1. 1 Whether directors must give prior notice to the company of intention to appoint administrators when appointment is to take immediate effect
  2. 2 Whether failure to give such notice invalidates the appointment

Ratio Decidendi

Directors are not required to give notice of intention to appoint administrators to the company where the appointment is to take immediate effect and there is no qualifying chargeholder; even if such notice were required, failure to give it does not automatically invalidate the appointment.

Court Disposition

Declaration granted

Orders

  • Declaration that the appointment of Mr Linton and Mr Weber as administrators was valid
  • Costs of and occasioned by the applications to be paid as an expense of the administration, without prejudice to creditors' right of challenge