Administration - general

Question 1

what is administration and the statutory aims?

Answer 1

administration is a rescue procedure to give the entity breathing space with a view to the administrator (A) achieving one of the three statutory aims (in order of priority):
o Rescue the company as a going concern
o Achieve a better result for the company’s creditors than if the company were wound up
o Realise some or all of the company’s property to one or more secured or preferential creditor(s)

Question 2

how long should the company be in administration for?

Answer 2

The company should only be in administration for as long as one of these aims is reasonably achievable. If not, A must apply to the court to end administration.

Question 3

which entities can be put into administration?

Answer 3

A company, LLP or partnership can be put into administration

Question 4

what is in place during administration? explain this.

Answer 4

a moratoriums is in place which places a stay on existing and new legal proceedings. Only permissible with consent of A or the court.

Question 5

what are the types of administration?

Answer 5

out-of-court administration and court administration

Question 6

who can appoint an administrator out of court?

Answer 6

o The company
o The Ds
o A qualifying floating charge holder (QFCH)

Question 7

what must the administrator do once they have been appointed?

Answer 7

o Send notice of their appointment to the RoC within 7 days of receiving the NOA
o Inform the below of their appointment as soon as reasonably practicable:
 The Gazette
 The company
 All creditors
 Any A receiver or CVA supervisor

Question 8

who does the administrator owe their duty to?

Answer 8

• A owes a duty to all creditors (not just those that appointed them)
• A is always an officer of the court (irrespective of how they were appointed)

Question 9

who can be an administrator? what is their role and what powers do they have? (5)

Answer 9

an administrator is an insolvency practitioner who will manage the company’s business and affairs. They are given very wide powers, inc. (non-exhaustive):
o Collect in property
o Sell/dispose of company property
o Borrow money/grant security
o Appoint a qualified person (i.e. solicitor or accountant) to assist
o Bring and defence court proceedings

Question 10

what happens to D’s powers on administration?

Answer 10

D’s powers are paused during administration