Sophie Perhar v Louise Freestone & Ors
The appointment of administrators was valid because the floating charge was enforceable due to serious and ongoing breaches of trust and contract by the applicant, and any defects in service or timing of the demand did not cause substantial injustice as the company could not pay the sums demanded. There was no improper motive in the appointment; it was made to protect the lender's financial position.
- Parties
- Applicant: Sophie Perhar; Respondent: Louise Freestone; Respondent: Paul Mallatratt; Respondent: Synergy in Trade Ltd
- Jurisdiction
- England and Wales
- Judgment Date
- 17 December 2025
- Procedural Posture
- Insolvency Application / Judgment After Trial of Application to Declare Administration Appointment Invalid
- Outcome
- Application dismissed
- Legal Topics
- Appointment of Administrators, Enforceability of Floating Charge, Breach of Trust, Improper Motive in Administration, Service of Demand, Remedies for Defective Enforcement
Case Brief
Summary, issues, holding and outcome
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Parties
Sophie Perhar
Applicant
Louise Freestone
Respondent
Paul Mallatratt
Respondent
Synergy in Trade Ltd
Respondent
Procedural Posture
Insolvency Application / Judgment After Trial of Application to Declare Administration Appointment Invalid
Legal Issues
- 1 Whether the appointment of administrators was invalid due to unenforceability of the floating charge under paragraph 16 of Schedule B1 to the Insolvency Act 1986
- 2 Whether the appointment was invalid due to non-compliance with contractual terms or improper motive under paragraph 81 of Schedule B1
- 3 Whether service of demand was defective and caused substantial injustice
Ratio Decidendi
The appointment of administrators was valid because the floating charge was enforceable due to serious and ongoing breaches of trust and contract by the applicant, and any defects in service or timing of the demand did not cause substantial injustice as the company could not pay the sums demanded. There was no improper motive in the appointment; it was made to protect the lender's financial position.
Court Disposition
Application dismissed
Orders
- The application to declare the appointment of administrators invalid is dismissed.
Full Case Text
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