Insolvency—Administrator—Removal

Court of Appeal, Mummery, Carnwath and Richards LJJ, 21 July 2011

The court has statutory power to remove and replace company administrators, but it first has to be established by the evidence that there is a good or sufficient ground or cause for the removal and replacement; only then can the court properly proceed to consider the exercise of its discretion by having regard to all the relevant factors for and against an order for removal.

Bridget Williamson (instructed by Coyle White Devine) for the appellants. Jamie Riley (instructed by Ingram Winter Green) for the respondents

The questions before the court on a second appeal were (i) what were good and sufficient grounds for the court’s exercise of its discretion under the Insolvency Act 1986 (IA 1986) to remove administrators from office; and (ii) in what circumstances should a court on appeal disturb a first instance decision to remove administrators. At first instance the registrar granted the appellants’