MTB Motors Ltd, Re [2010] EWHC 3751 (Ch) (26 November 2010)

MTB Motors Ltd, Re [2010] EWHC 3751 (Ch) (26 November 2010)

Failure to file FSA consent with the notice of intention to appoint administrators rendered the appointment invalid and incapable of cure under Rule 7.55 or paragraph 104. However, the court has jurisdiction to make a retrospective administration order under paragraph 13(2) of Schedule B1, thereby regularising the administrators' appointment and validating their acts.

Citation
[2010] EWHC 3751 (Ch)
Parties
Company in Administration: M. T. B. Motors Limited (In Administration); Joint Administrator/applicant: Andrew Poxon; Joint Administrator/applicant: John Titley
Jurisdiction
England and Wales
Judgment Date
26 November 2010
Procedural Posture
Insolvency Application / Application for Declaration And/or Administration Order
Outcome
Retrospective administration order granted
Legal Topics
Administrator Appointment, FSA Consent, Retrospective Administration Order, Defects in Appointment, Validation of Acts
Insolvency Financial Regulation Administrator Appointment FSA Consent Retrospective Administration Order Defects in Appointment Validation of Acts

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Parties

M. T. B. Motors Limited (In Administration)

Company in Administration

Andrew Poxon

Joint Administrator/applicant

John Titley

Joint Administrator/applicant

Procedural Posture

Insolvency Application / Application for Declaration And/or Administration Order

Legal Issues

  1. 1 Whether failure to file FSA consent with notice of intention to appoint administrators renders appointment a nullity
  2. 2 Whether such defect can be cured under Rule 7.55 of the Insolvency Rules 1986 or paragraph 104 of Schedule B1 to the Insolvency Act 1986
  3. 3 Whether the court can make a retrospective administration order to regularise the position

Ratio Decidendi

Failure to file FSA consent with the notice of intention to appoint administrators rendered the appointment invalid and incapable of cure under Rule 7.55 or paragraph 104. However, the court has jurisdiction to make a retrospective administration order under paragraph 13(2) of Schedule B1, thereby regularising the administrators' appointment and validating their acts.

Court Disposition

Retrospective administration order granted

Orders

  • Mr Andrew Poxon and Mr John Titley appointed as administrators of M. T. B. Motors Ltd with retrospective effect from 3.30pm on 7 October 2010
  • All acts undertaken and decisions made by the administrators since 7 October 2010 validated