MAJORITY DECISION INVALID UNLESS FORMALITIES FOLLOWED

摘要

The recent case of Baker & O'Reilly v London Bar Company Ltd has confirmed the principle laid down in Minmar (929) Ltd v Khalastchi (see Accountancy, July 2011, p81) concerning the appointment of an administrator using the out of court procedure in Sch B1 of the Insolvency Act 1986. In Minmar, the court held that a provision in Sch B1 that 'a reference to something done by the directors of a company includes a reference to the same thing done by a majority of the directors of a company' did not mean that a majority of the directors could reach a decision by any means. It remained necessary to comply with the relevant formalities for reaching such a decision.