Re Zinc Hotels (Holdings) Ltd and other companies; Zinc Hotels (Investment) Ltd and another v Beveridge and others

Company – Administration. Where, as in the present case, administrators had been appointed under para 14 of Sch B1 to the Insolvency Act 1986 by a floating charge-holder, an additional administrator could only be appointed, both on an interim and a final basis, either by the floating charge-holder or by the court on the application of the existing administrators. Therefore, the applicants (who were the shareholders of the companies in administration) had no standing to seek an appointment of an additional administrator. The Chancery Division so ruled in dismissing the shareholders' application to appoint additional concurrent joint administrators and to remove the current administrators in respect of companies in the Zinc Group. The court held that no conflict of interest arose on the facts and that the current administrators were not in breach of their duties. Further, the court dismissed the shareholders' application for an injunction to restrain distribution of the sales proceeds of any assets realised in the administrations of the companies, pending resolution of certain claims.

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