Here a company shareholder attempted to challenge the administrators' proposal to rescue a balance sheet solvent company by securing additional funding, instead of selling the business. The shareholder wanted to sell the business and assets.

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The application of Michael Loveridge to challenge the administrators' decision formed part of a long-running family dispute. The company in administration was Breton Park Residential Homes Ltd (Breton), and had been run by Michael's mother and brother Audey.

A creditor or member of a company in administration may apply to court to claim that the administrators propose to act in a way which would unfairly harm the interests of the applicant, and this is what Michael did.

Audey Loveridge transferred his sole shareholding in Breton to Michael and his mother just before his divorce from Melinda. In the course of the ongoing divorce proceedings, which had begun before Michael's application, Melinda challenged the transfer of company shares as a transaction undertaken with the intention of preventing her claim for financial relief.

Ownership of the shares in the company was therefore disputed; and the administrators' proposals were challenged.