Information Governance v Popham [2013] EWHC 2611 (Ch) (07 June 2013)

Information Governance v Popham [2013] EWHC 2611 (Ch) (07 June 2013)

Although the company appears unable to pay its debts, the unusual circumstances—specifically, the recent valid appointment of two directors who oppose administration and believe the company may be revived—mean it is not appropriate to make an administration order at this time.

Citation
[2013] EWHC 2611 (Ch)
Parties
Claimant: Information Governance; Defendant: Popham
Jurisdiction
England and Wales
Judgment Date
07 June 2013
Procedural Posture
Application for Administration Order / Judgment on Application
Outcome
Application for administration order dismissed
Legal Topics
Administration Order, Director Powers, Shareholder Rights, Insolvency Act 1986, Shareholders Agreement

Case Brief

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Parties

Information Governance

Claimant

Popham

Defendant

Procedural Posture

Application for Administration Order / Judgment on Application

  1. 1 Whether Information Governance Limited is unable to pay its debts or likely to become unable to pay its debts
  2. 2 Whether the court should exercise its discretion to make an administration order given the company's circumstances and recent changes to the board of directors

Ratio Decidendi

Although the company appears unable to pay its debts, the unusual circumstances—specifically, the recent valid appointment of two directors who oppose administration and believe the company may be revived—mean it is not appropriate to make an administration order at this time.

Court Disposition

Application for administration order dismissed

Orders

  • Refusal to make an administration order on Mr Hall's application