Insolvency

The purpose of the court’s powers under para 55.2 of Sch B1 to the Act was to give directions to the administrator in circumstances where there might be some real question as to the course that he should follow, and it unnecessarily incurred expenditure in the administration if the court was asked to give directions when no effective purpose was to be served by those directions. If the proposals that were put to creditors were specific as to what the administrator was going to do, and had the effect that he was mandated to exercise his powers in one particular way rather than in another, then the fact that the proposals had not been approved or had been specifically rejected by the creditors might give rise to a real question as to what the administrator was to do. Unless and until proposals had been approved by the creditors, or directions had been given by the court, an administrator had the extensive powers that