Challenge denied: administrator appointments held to be valid, ASIC register plays key role

What you need to know

• The sole shareholder of two companies has failed in attempting to challenge the validity of the appointment of administrators to those companies.
• The three key issues canvassed in the case were whether the evidence supported the claim of an invalid appointment, whether the appointment was effective based on assumptions made about the accuracy of the ASIC register, and whether validating orders should be made to uphold the appointment even if it was found to be invalid.
• Company directors and administrators alike should take notice of the guidance emerging from this decision.