The validity of security and administration appointments by floating charge holders (Outer House, Court of Session) | Practical Law

The validity of security and administration appointments by floating charge holders (Outer House, Court of Session) | Practical Law

In Hooley Ltd v The Victoria Jute Company Ltd and others [2016] ScotCS CSOH 141 the Scottish Court of Session (Outer House) considered whether paragraphs 14 and 16 of Schedule B1 to the Insolvency Act 1986 imposed any requirement on the appointor or the court to investigate the validity or enforceability of the charge which was being relied on to authorise the appointment of an administrator by a floating charge holder.

The validity of security and administration appointments by floating charge holders (Outer House, Court of Session)

by Practical Law Restructuring and Insolvency
Published on 26 Oct 2016 • England, Scotland, Wales
In Hooley Ltd v The Victoria Jute Company Ltd and others [2016] ScotCS CSOH 141 the Scottish Court of Session (Outer House) considered whether paragraphs 14 and 16 of Schedule B1 to the Insolvency Act 1986 imposed any requirement on the appointor or the court to investigate the validity or enforceability of the charge which was being relied on to authorise the appointment of an administrator by a floating charge holder.
The court also considered aspects of modified universalism.