Boura v Lyhfl Ltd [2023] EWHC 2585 (Ch) (19 October 2023)

Boura v Lyhfl Ltd [2023] EWHC 2585 (Ch) (19 October 2023)

One of two directors does not have standing to apply to court for an administration order 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.

Citation
[2023] EWHC 2585 (Ch)
Parties
Claimant: Abigal Boura; Defendant: LYHFL Limited; Director (objector): Leigh Harmer
Jurisdiction
England and Wales
Judgment Date
19 October 2023
Procedural Posture
Application for Administration Order / Judgment on Application for Appointment of Administrator
Outcome
Application dismissed with costs.
Legal Topics
Administration Order, Director Powers, Standing to Apply for Administration, Board Resolutions, Interpretation of Insolvency Act 1986
Insolvency Company Law Administration Order Director Powers Standing to Apply for Administration Board Resolutions Interpretation of Insolvency Act 1986

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Parties

Abigal Boura

Claimant

LYHFL Limited

Defendant

Leigh Harmer

Director (objector)

Procedural Posture

Application for Administration Order / Judgment on Application for Appointment of Administrator

Legal Issues

  1. 1 Whether one of two directors has standing to apply to court for an administration order 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 an administration order 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).