One of two directors lacks standing to appoint administrator

A director applied under Schedule B1 IA 1986 for the appointment of an administrator. The other director opposed the application on the basis that one director alone had no standing to do so.

The applicant invited the court to follow the decisions in Brickvest Ltd, Re [2019] EWHC 3084 (Ch) and Nationwide Accident Repair Services Ltd, Re [2020] EWHC 2420 (Ch). In both cases, the court appointed administrators on the application of the sole director.

The court declined to do so. Brickvest and Nationwide were both urgent, unopposed applications. They could be distinguished with the current application, or in any event the court was satisfied that it should depart from those decisions.

The plain meaning of Schedule B1 was that the application to court required the authorisation of at least a majority of the board. The court had no power to appoint administrators of its own motion.

The case provides clear confirmation that a director only has power to apply to court under para.12(1)(b) for an administration order with the approval of the majority of the directors and with a valid board resolution.

Boura v Lyhfl Ltd [2023] EWHC 2585 (Ch)

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