Company

Reading paras 26 and 28 of Sch B1 of the Insolvency Rules 1986 (SI 1986/1925) consistently with other provisions and with an eye on the purpose for which they had been enacted, directors could proceed to make an immediate appointment without giving “notice of intention” to the company. As a matter of strict construction there was a strong indication that the draftsman had contemplated two scenarios.

One in which notice of intention had to be given to a qualifying chargeholder and another in which no such notice had to be given. Paragraph 30 of Sch B1 dealt with the contents of the statutory declaration that had to be contained in the prescribed form “in a case in which no person is entitled to notice of intention to appoint under paragraph 26(1) and paragraph 28 therefore does not apply”. That indicated that para 28 was intended only to apply where there was someone who was entitled to appoint an administrative receiver of the company