Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
Find up-to-date guidance on points of law and then easily pull up sources to support your advice with Lexis PSL
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
In Randhawa v Turpin, a challenge to the appointment of administrators resulted in a reaffirmation by the Court of Appeal of the need for formality and strict compliance when managing the affairs of a company. Ali Tabari, of St Philips Stone, examines the court's decision and considers its implications.
Randhawa and another v Turpin and another (as former Joint Administrators of BW Estates Ltd)  EWCA Civ 1201,  All ER (D) 40 (Aug)
The judge had erred in holding that the sole director of a company, whose articles of association had required two directors for its board meeting to be quorate, had validly appointed joint administrators under paragraph 22 of Schedule B1 to the Insolvency Act 1986 (IA 1986). Among other things, the Court of Appeal, Civil Division, held that the sole director's resolution had been incurably invalid in the circumstances, and could not have been rendered valid by the application of the principle arising from the decision in Re Duomatic Ltd ( 1 All ER 161) (the Duomatic principle).
What was the background to the case?
The company initially had two shareholders, a husband and wife. The wife's shareholding was transferred to a company, Belvadere (an Isle of Man company), which was later dissolved but remained on the register as being a member of the company. The husband was disqualified from being a director, and his son became the sole director, while still being apparently accustomed to receiving instructions from the husband.
The son appointed the respondents as administrators over the company. The appellants, having a final charging order over the husband’s shareholding in the company and also having taken an assignment of debt from one of the company’s creditors, appealed against the administrators’ appointment, which they claimed was invalid.
At first instance, HHJ Purle QC found that the administrators’ appointment was valid. For further reading on this decision, see News Analysis: Validity of appointment and costs of administration—application of Duomatic principle (Re BW Estates Ltd, Randhawa v Turpin).
What issues arose for the Court of Appeal’s consideration?
The key areas of dispute were whether:
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
0330 161 1234