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Appointment of administrators—is the lack of FCA consent prior to appointment a curable defect? (Re A.R.G. (Mansfield) Ltd)

Appointment of administrators—is the lack of FCA consent prior to appointment a curable defect? (Re A.R.G. (Mansfield) Ltd)
Published on: 18 May 2020
Published by: LexisPSL
  • Appointment of administrators—is the lack of FCA consent prior to appointment a curable defect? (Re A.R.G. (Mansfield) Ltd)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details

Article summary

Restructuring & Insolvency analysis: Re A.R.G. (Mansfield) Ltd is the latest in a long line of cases considering the consequences of a defect in the appointment of administrators. The case involved a similar problem encountered in Re M.T.B. Motors Ltd [2010] EWHC 3751 (Ch) where the need for Financial Conduct Authority (FCA) consent prior to the appointment of administrators was not appreciated at the time due to the manner of the initial search. On granting the directors’ application for a retrospective appointment in Re A.R.G (Mansfield) Ltd, HHJ Davis-White QC gave a detailed reserved judgment which examines the apparent uncertainty in the existing authorities as to whether the lack of FCA consent at the time of filing the notice of appointment amounts to a curable or incurable defect. This article seeks to highlight the key elements of HHJ Davis-White QC’s judgment. Written by Lisa Feng, barrister, at Exchange Chambers. or take a trial to read the full analysis.

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