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ARTICLE · 14 NOVEMBER 2023

Administrators put on notice to validate their appointment

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Administrators must investigate doubts/allegations concerning the validity of their appointment & bring to court's attention.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Alicia Salvo
Alicia Salvo
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In the matter of Premier Energy Resources Pty Ltd [2023] NSWSC 1185, the Administrator unsuccessfully sought an order validating his appointment where he failed to investigate allegations that his appointment documents included a director's forged letter of resignation.

Key takeaways

  • Administrators must investigate any doubts or allegations concerning the validity of their appointment and bring those matters to the Court's attention in a timely manner. This is an obligation and not merely best practice.

  • If following an investigation, an administrator is still unable to satisfy themselves that their appointment was valid, they must apply to a court seeking an order validating their appointment.

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