Director’s application for administration refused where other directors considered the business was viable - .PDF file.
This was a sole director’s application for administration under paragraph 12 of Schedule B1 to the Insolvency Act 1986.
Subsequently, two shareholders had used their powers in the shareholder agreement to appoint themselves as directors. They opposed the administration application on the basis that the company had sufficient business to continue to trade solvently.
The administration application was refused. The court had limited information regarding the company’s solvency and could not reach a firm view on it…
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