The Chancery Division ruled on an application made by the joint administrators of Bitumina Industries Ltd (the company) for directions as to the validity and enforceability of a charge given to the second respondent by the company in January 2020. The court held that the charge had been a validly created security, and it was effective against the joint administrators. The charge had not been invalidated by s 245(2)(a) of the Insolvency Act 1986 at the date of its creation, and was valid to the extent of the value derived by the company from its acquisition of the shares of another company.