MAY I BE EXCUSED?

This article discusses recent developments in case law regarding the court's ability to excuse an administrator's post-appointment liabilities in voluntary administrations. Insolvency practitioners can seek guidance and direction from the court if they are concerned about their liabilities. The article highlights the relevant legislation and provides examples of recent cases where the court considered commercial factors in determining whether to excuse personal liability. These cases demonstrate that administrators can continue an administration and seek exemption from personal liability if they can demonstrate that it is in the best interest of the company and its creditors. [Extracted from the article]