Re Cornercare Ltd [2010]
The directors of C applied to court seeking permission to appoint an administrator out of court in circumstances where they had previously filed a notice of intention to appoint but the appointment had not been made within 10 business days of filing in accordance with schedule B1 of the Insolvency Act 1986.
The judge said that there was nothing to prevent a fresh notice of intention to appoint being filed and served once the time limit for appointment under the initial notice had expired.
The court held that there was no objection in principle to serving successive notices of intention to appoint an administrator provided that directors and their advisers proceeded with caution and showed a valid reason for any delay in appointing an administrator.
The court commented that, although the issue and service of fresh notices could give rise to potential abuse, the court would have adequate power to act in appropriate circumstances to restrain any unscrupulous behaviour.