Introduction
The Grand Court has recently provided helpful clarification as to the appropriate test to be applied when a dispute arises over the identity of the insolvency practitioners proposed to be appointed by a creditor or the company. In Global Fidelity Bank Ltd (in Voluntary Liquidation)1 the Court confirmed the 3-stage test for determining independence and that in applying the test, significant weight should be afforded to the views of the creditors.
Background
Global Fidelity bank (the Bank) was placed into voluntary liquidation on 14 June 2021 following an urgent independent financial review and preparation of a report into the Bank's financial position. The Bank engaged Michael Pearson and Adam Keenan of FFP to conduct the financial review and on receipt of the report, appointed Mr Pearson and Mr Keenan as voluntary liquidators (VLs). In the knowledge that no declaration of solvency would be forthcoming from the directors of the Bank, the VLs made an application to bring the voluntary liquidation under the supervision of the Court under section 124(1) of the Companies Act (2021 Revision) and for the VLs to be appointed as joint official liquidators of the Bank. While there was no objection to the making of a supervision order, one of the Bank's largest creditors (the Opposing Creditor) objected to the appointment of the VLs as joint official liquidators.
The basis of the Opposing Creditor's objection to the nominated joint official liquidators was the fact that...
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