Re BW Estates Ltd; Randhawa and another v Turpin and another

Company – Administrator. The applicant creditors of a company in administration applied for orders that: (i) the remuneration of the respondent administrators was excessive and should be either disallowed entirely or reduced; and (ii) that the administrators should pay the costs of the application personally and not as an expense of the administration. The Companies Court rejected the contention that the administrators, appointed under Insolvency Act 1986, could not or should not have made the statement as to the statutory purpose, as required under para 29(3)(b) of Sch B1 to the Act, which had led to their appointment. Further, the argument that they should not be entitled to any remuneration at all for their services was rejected. Once the decision to appoint administrators had been made, the responsibility on the prospective administrator in considering whether the statement as to the statutory purpose could be made was to look ahead at what would or might happen during the administration if he was appointed, and not behind at the motives which might have led the directors to choose to make the appointment.

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