Rangers FC entitled to appoint their choice of administrators
15 February 2012
The widely publicised entering into administration of Rangers Football Club was preceded by a legal battle between the Rangers PLC and HMRC on 14 February. The company had proceeded by way of Notice of Intention to Appoint Administrators on 13 February. However, shortly after the Notice was presented, HMRC presented a petition to the Court of Session, seeking administration orders and the appointment of interim managers. A question arose as to which should take precedence: the Company’s Notice, or HMRC’s Petition? This in turn depended on the effect of the moratorium imposed by the presentation of the Notice. HMRC sought to argue that the moratorium did not apply to a Petition such as they had presented, with the result that the Company could not appoint administrators while the Petition continued. The Company, on the other hand, argued that the moratorium covered the Petition, with the result that the Petition could not proceed without the leave of the Court so that there was no impediment to the Company’s appointment. In the event, HMRC agreed to the appointment being made by the Company.
Rangers PLC were represented by Roddy Dunlop QC of Axiom Advocates.
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