Virtualpurple Professional Services Ltd, Re

Directors are not required to give notice of intention to appoint administrators to the company when there are no qualifying chargeholders and the appointment is to take immediate effect; failure to give such notice does not invalidate the appointment.

Parties: Company: Virtualpurple Professional Services Limited; Director/applicant: Ms Williamson; Administrator/applicant: Mr Linton; Administrator/applicant: Mr Weber
Jurisdiction: England and Wales
Judgment Date: 21 December 2011
Procedural Posture: Application for Declaration / Judgment
Outcome: Declaration granted; appointment of administrators valid.
Legal Topics: Appointment of Administrators, Notice Requirements, Validity of Appointment

Insolvency Company Law Appointment of Administrators Notice Requirements Validity of Appointment

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Parties

Virtualpurple Professional Services Limited

Company

Ms Williamson

Director/applicant

Mr Linton

Administrator/applicant

Mr Weber

Administrator/applicant

Procedural Posture

Application for Declaration / Judgment

Legal Issues

1 Whether directors must give prior notice to the company when appointing administrators with immediate effect
2 Consequences of failure to give such notice

Ratio Decidendi

Court Disposition

Declaration granted; appointment of administrators valid.

Orders

Appointment of Mr Linton and Mr Weber as administrators declared valid.
Costs of and occasioned by the applications to be paid as an expense of the administration, without prejudice to creditors’ right of challenge.