In Australian Securities & Investment Commission v Planet Platinum Ltd [2016] VSC 120, the Australian Securities and Investment Commission (ASIC) sought, and was granted, a declaration from the Supreme Court of Victoria that the appointment of the administrator of Planet Platinum Ltd (Planet Platinum) was invalid and of no effect. 

ASIC had filed an application to have Planet Platinum wound up on 21 April 2015.  On 3 May 2015, in an apparent effort to frustrate ASIC's winding up application, the directors of Planet Platinum appointed an administrator. 

In granting the declaration sought, the Court confirmed that company directors must, when appointing an administrator, have a bona fide opinion that the company is or will become insolvent.  In this case the Court found that the directors' opinion was not bona fide as, at the time of the appointment, they did not have the company's management accounts or other financial information and had not made inquiries of its creditors (those findings were made against the background of a company that was trading well and was relatively asset rich).  The Court also considered the administrator was appointed for the predominant, improper, purpose of forestalling ASIC's winding up application.

See Court decision here.