This week’s TGIF considers the recent decision of the Federal Court of Australia in Patel v Pleash [2025] FCA 77 which held that a proposed administrator must take reasonable steps to be satisfied as to the basis of their appointment before accepting an appointment.
Key takeaways
- Registered liquidators should exercise appropriate care and diligence in satisfying themselves that the power, under section 436C of the Corporations Act 2001 (Cth), has been engaged before consenting to act as an administrator.
- Recovery of a debt is not a proper purpose to appoint administrators to a company and a potential administrator must satisfy themselves the appointer is not seeking to appoint administrators for that improper purpose.
- An…
