Insolvency

The free-standing power under para 88 of Sch B1 to the Insolvency Act 1986 appeared to be unlimited. However, it was not easy to think of any circumstances in which the court would remove a liquidator under that paragraph without cause being shown.

There had to be a good ground for removing an administrator but the ground need not involve misconduct, personal unfitness or imputation against his integrity. The court would have regard to the wishes of the majority of creditors. The issue raised by the applicant need not be resolved in his favour at the time of the application. He only had to show that the evidence raised a serious issue for investigation.