Safe Business Solutions Ltd (in liquidation) v Cohen and another

Administration – Conduct of administration. The Companies Court granted the applicant company, Safe Business Solutions Ltd (in liquidation), an order, under para 43 of Sch B1 to the Insolvency Act 1986, to commence legal proceedings against 727 companies in administration. SBS's case was that the joint administrators of the companies, acting in their personal capacity, had entered into a contract to pay SBS £500, plus VAT, to produce financial statements or accounts for each of the companies. The court held that the starting point, in respect of the application, was the status of the administration at the time of the court hearing, and that the strength of the present case could not be easily dismissed in circumstances where, in the light of questions of fact, yet to be determined, SBS's case had a reasonable prospect of success. Further, it held that delays in making the present application would not affect the operation of the administration.

Category: