“There are a number of aspects here which require serious investigation. The creditors must have confidence that they will be investigated with appropriate vigour. If the only concern was a commercial issue then the views of the majority of creditors in value would have to prevail. Where there is a question of the need for investigations to be carried out with due vigour, there is a public interest issue in ensuring that the investigations take place properly. In my judgment the principles set out by His Honour Judge Maddocks apply to administration and Mr Andonikou’s reliance on Mr Farhi and his continued confidence in him even when he discovered he had not been given the full picture means that creditors cannot be satisfied that Mr Andronikou would deal with this matter appropriately.”
“Fairness and commercial morality may require that a substantial independent creditor, which feels itself to have been prejudiced by what it regards as sharp practice, should be able to insist on the company’s affairs being scrutinised by the process which follows a compulsory order. Such a creditor is entitled to an investigation which is not only independent, but can be seen to be independent. This may be so even where the voluntary liquidation is already well advanced and a compulsory order may cause further expense and delay….”
“the fact that the associated creditors have gone to such lengths to install and maintain Mr Moses in office is itself enough to disqualify him in the eyes of Rainbow [the landlord]; and in view of all that has happened Rainbow’s attitude cannot be dismissed as irrational. Nor can it be characterised as a ‘witch hunt’; the matters that call for investigation will be investigated impartially, on behalf of the general body or creditors, during the process of compulsory liquidation.”