Vol 16 (2019) - Issue 1

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Administrators: Conflicts of Interest and Removal

Synopsis

There has been a flurry of decisions in 2018 in which allegations have been made of unacceptable conflicts of interest on the part of administrators. The key issue for practitioners is to distinguish between those actual or potential conflicts that will attract censure and those that can adequately be managed. Controversy surrounds, in particular, 'pre-pack' administrations, which are fertile ground for conflicts but are authorised by the legislature and the regulators. For the first time since the extensive reforms of the administration regime fifteen years ago, the courts have addressed these issues head-on in a series of important decisions. This article analyses the cases in turn to see what lessons can be learned by administrators and those who advise them.