Although section 442A of the Corporations Act 2001 (Cth) (‘the Act’) gives administrators the power to remove a director from office or appoint a replacement to a company, section 437A of the Act sets out the role of an administrator and specifies that while a company is in administration, the administrator has control of the company’s business, property and affairs.
In light of rising insolvencies, particularly in the construction industry, a previous decision in Scott v Hinchinbrook Services Ltd offers insight for insolvency professions into the requirements governing an administrator’s powers to remove and replace directors of a company.
The decision in Hinchinbrook raises several considerations for…
