Administration - court appointment Flashcards
(8 cards)
who may apply for an administration order?
o Company
o Directors
o QFCH
o One or more of the creditors
o Supervisor to CVA procedure
The company/D would need to use this route where they can’t use the out of court route (i.e. unresolved WUP, has been in administration in the last 12 months etc). Similar principles for QFCH holders.
what are the three main stages?
- filing and serving application & evidence
- possible intervention by QFCH
- court hearing
what documents must be filed? what is the effect once these are filed?
o Administration application
o Witness statement
o Statement by proposed A
o Fee
Interim moratorium from the time the application is made
when must the documents be served and on whom?
The documents must be served as soon as reasonably practicable on:
o Any person who is entitled to appoint an A or A receiver
o Proposed administrator
o Petitioner of a WUP / provisional liquidator
o CVA supervisor
o The company
how might a QFCH intervene/obstruct an application? what are the requirements?
A QFCH may apply to have an A of their choice to be appointed as A
they must file consent of all QFCHs, consent from proposed A + evidence they are entitled to appoint an A
when can the court grant an administration order?
The court has discretion to grant an order where the applicant has evidenced that:
o The company is unable to pay its debts (see: s123 IA 1986); +
o An order is reasonably likely to achieve a purpose of administration
NB: if the applicant is a QFCH they need not prove the 1st element
what orders can the court make?
The court can make any order it sees fit, i.e.:
o An administration order
o Winding-up order
o Dismiss the application
o Interim order
when does the appointment take effect?
from the date of the order (unless it states otherwise)
