Re Towcester Racecourse Company Ltd (in administration)

Insolvency – Appointment of administrators. The joint administrators of Towcester Racecourse Company Ltd (the company) and the current directors of the company applied, under para 63 of Sch B1 to the Insolvency Act 1986 for, among other things, a declaration that the appointment of the administrators had been valid, and that any defect in their appointment had not invalidated it. The Companies Court, in allowing the application, held that the appointment had not been invalidated in any way by the use of the prescribed form (of notice of appointment of an administrator by the directors of a company, where a notice of intention to appoint had been given), and that any other relevant declaration that was needed in order to protect the position of the administrators could be made. The court considered Re NJM Clothing Ltd[2018] All ER (D) 228 (March) and held that the two potential defects alluded to in that case did not constitute real defects. It held that it was not logically necessary that the appointment of the administrators should take place even a moment before the notice was given to the court, and that it should be possible to make a referential appointment, so as to say that an appointment was made from an event occurring in the future. The court held that it was not a defect in the appointment of administrators to specify the moment that the court endorsed on the notice filed in court as the point in time at which the appointment was made.

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