Re Euromaster Ltd

Re Euromaster Ltd

The appointment of administrators outside the 10-day window under Schedule B1 paragraph 28(2) is an irregularity, not a nullity. IR 7.55 applies, and unless substantial injustice is shown, the appointment stands. The defect does not invalidate prior acts of the administrators.

Parties
Company: Euromaster Ltd; Administrator: Mr Dante; Administrator: Mr Davis; Qualifying Chargeholder: Lloyds TSB Bank Plc; Applicant's Counsel: Daniel Warents
Jurisdiction
England and Wales
Judgment Date
10 August 2012
Procedural Posture
Insolvency Application / Judgment
Outcome
Appointment of administrators upheld as irregular but not void.
Legal Topics
Appointment of Administrators, Procedural Irregularity, Nullity Vs Irregularity, Schedule B1 Compliance
Insolvency Company Law Appointment of Administrators Procedural Irregularity Nullity Vs Irregularity Schedule B1 Compliance

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Parties

Euromaster Ltd

Company

Mr Dante

Administrator

Mr Davis

Administrator

Lloyds TSB Bank Plc

Qualifying Chargeholder

Daniel Warents

Applicant's Counsel

Procedural Posture

Insolvency Application / Judgment

Legal Issues

  1. 1 Whether the appointment of administrators outside the 10-day window under Schedule B1 paragraph 28(2) is a nullity or an irregularity
  2. 2 Consequences of procedural non-compliance in insolvency appointments

Ratio Decidendi

The appointment of administrators outside the 10-day window under Schedule B1 paragraph 28(2) is an irregularity, not a nullity. IR 7.55 applies, and unless substantial injustice is shown, the appointment stands. The defect does not invalidate prior acts of the administrators.

Court Disposition

Appointment of administrators upheld as irregular but not void.

Orders

  • Declaration that Mr Dante and Mr Davis are in office as administrators of Euromaster and will continue to be so, subject to any application under IR 7.55.
  • No prior act of the administrators in the administration is invalidated by reason only of the defect in their appointment.