Abigal Boura v Lyhfl Limited

Abigal Boura v Lyhfl Limited

One of two directors does not have standing to apply to court for the appointment of an administrator under para.12(1)(b) of Schedule B1 to the Insolvency Act 1986 without the approval of the majority of the directors and a valid board resolution.

Parties
Applicant/claimant/director: Abigal Boura; Respondent/defendant/company: LYHFL Limited; Director/opposing Party: Leigh Harmer
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Insolvency/administration Application / Ruling on Application for Appointment of Administrator
Outcome
Application dismissed with costs
Legal Topics
Directors' Powers, Standing to Apply for Administration, Board Resolutions, Interpretation of Insolvency Act 1986
Insolvency Law Company Law Directors' Powers Standing to Apply for Administration Board Resolutions Interpretation of Insolvency Act 1986

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Parties

Abigal Boura

Applicant/claimant/director

LYHFL Limited

Respondent/defendant/company

Leigh Harmer

Director/opposing Party

Procedural Posture

Insolvency/administration Application / Ruling on Application for Appointment of Administrator

Legal Issues

  1. 1 Whether one of two directors has standing to apply to court for the appointment of an administrator without a majority board resolution under para.12(1)(b) of Schedule B1 to the Insolvency Act 1986

Ratio Decidendi

One of two directors does not have standing to apply to court for the appointment of an administrator under para.12(1)(b) of Schedule B1 to the Insolvency Act 1986 without the approval of the majority of the directors and a valid board resolution.

Court Disposition

Application dismissed with costs

Orders

  • Application for appointment of administrator dismissed
  • Applicant to pay costs summarily assessed at £45,000 (including VAT)