Success for Steven Fennell in challenge to administrator’s conduct
October 8, 2015
Steven Fennell, from Exchange Chambers, successfully represented Barclays Bank plc in an application to restore a company to the register to allow an independent liquidator to investigate matters prior to its insolvency and the conduct of its former administrator (Barclays Bank plc v Sharma  EWHC 2806 (Ch)). He was instructed by David Sullivan of Eversheds
Client Connection Limited went into administration in 2012. Its administrator spent less than four hours investigating transactions prior to its insolvency, and closed the administration and caused the company to be dissolved. When the bank later identified payments and dividends prior to the administration which had not been dealt with, it applied to restore the company to the register and to wind it up to allow a new liquidator to carry out a proper investigation. The application was strenuously resisted by the former administrator who’s conduct was in question.
The Vice-Chancellor held that Barclays had a legitimate interest in having the company wound up to allow a proper investigation to take place, approved the approach taken by Barclays and gave general guidance on the approach which the courts should take to such applications.