Insolvency Act 1986, section 108

Appointment or removal of liquidator by the court

Part IV Winding Up of Companies Registered under the Companies Acts

(1)If from any cause whatever there is not liquidator acting, the court may appoint a liquidator.

(2)The court may, on cause shown, remove a liquidator and appoint another.

Cases considering section 108 21

Fakhry v Pagden & Anor

[2020] EWCA Civ 1207 · 15 September 2020Interprets

The court held that this provision gives the court powers to appoint and remove liquidators which qualify members’ control of a solvent liquidation. Members and former liquidators may have sufficient interest to participate in applications invoking those powers (see paras [48]; [66]-[70]). The court explained that it may appoint a liquidator whenever no liquidator is acting, supplementing the members’ power to fill a vacancy (see para [31]). The court explained that, on cause shown, it may remove a liquidator and appoint another. The power supplements members’ statutory appointment and removal powers (see para [31]).

Donaldson v O'Sullivan

[2008] EWCA Civ 879 · 30 July 2008Limits

Identifies the express replacement power for liquidators in voluntary liquidations. The contrast supports, but does not dictate, the interpretation of the bankruptcy provisions. (see paras [27], [30], [39]) Confirms the court’s power to appoint a liquidator where no liquidator is acting in a voluntary liquidation. (see para [27]) Confirms the express power to remove and replace a liquidator in a voluntary liquidation. The Court of Appeal declines to infer that silence in bankruptcy creates a prohibition. (see paras [27], [30], [43])

Edennote Ltd, Re

[1996] EWCA Civ 1349 · 21 May 1996Interprets

The court treated the difference between section 108(2)’s express reference to cause and section 172 as immaterial. The broad removal principle applied in the voluntary-winding-up context was therefore relevant to removal under section 172. (see “The removal of Mr Ryman as liquidator”)

1 more judgment, and what each says about section 108, are in the case-law panel in the full Act.