• Chapter 1 Chapter 1 — Nature of Administration

    • 1. Administration

      (1) For the purposes of these Regulations, "administrator" of a Company means a person appointed under this Part 1 (Administration) to manage the Company's affairs, business and property and "administrator" of a Deed of Company Arrangement means a person appointed under this Part 1 (Administration) to act as the administrator of a Deed of Company Arrangement.
      (2) For the purposes of this Part 1 (Administration) —
      (a) a Company is "in administration" while the appointment of an administrator of the Company has effect;
      (b) a Company "enters administration" when the appointment of an administrator of the Company takes effect;
      (c) a Company ceases to be in administration when the appointment of an administrator of the Company ceases to have effect in accordance with this Part 1 (Administration); and
      (d) a Company does not cease to be in administration merely because an administrator of the Company vacates office (by reason of resignation, death or otherwise) or is removed from office.
      (3) A person may be appointed as administrator of a Company —
      (a) by administration order of the Court under Section 6 (Administration order);
      (b) by the holder of a qualifying charge under Section 21 (Power to appoint); or
      (c) by the Company or its Directors under Section 29 (Power to appoint).

    • 2. Purpose of administration

      (1) The administrator of a Company must perform his functions with the objective of —
      (a) rescuing the Company as a going concern;
      (b) achieving a better result for the Company's creditors as a whole than would be likely if the Company were wound up (without first being in administration); or
      (c) realising property in order to make a distribution to one or more secured or preferential creditors.
      (2) Subject to subsection (4), the administrator of a Company must perform his functions in the interests of the Company's creditors as a whole.
      (3) The administrator of a Company must perform his functions with the objective specified in subsection (1)(a) unless he thinks either —
      (a) that it is not reasonably practicable to achieve that objective; or
      (b) that the objective specified in subsection (1)(b) would achieve a better result for the Company's creditors as a whole.
      (4) The administrator of a Company may perform his functions with the objective specified in subsection (1)(c) only if —
      (a) he thinks that it is not reasonably practicable to achieve either of the objectives specified in subsection (1)(a) and (b); and
      (b) he does not unnecessarily harm the interests of the creditors of the Company as a whole.

    • 3. Administrator

      The administrator of a company must perform his functions as quickly and efficiently as is reasonably practicable.

    • 4. Status of administrators

      An administrator of a Company and an administrator of a Deed of Company Arrangement is an officer of the Court (whether or not he is appointed by the Court).

    • 5. General restrictions

      (1) A person may be appointed as administrator of a Company or an administrator of a Deed of Company Arrangement only if he is licensed as an insolvency practitioner under the Commercial Licensing Regulations 2015.
      (2) A person may not be appointed as administrator of a Company which is in administration (subject to the provisions of Chapter 11 (Replacing Administrator) of Part 1 (Administration) about replacement and additional administrators).
      (3) A person may not be appointed as administrator of a Company which is in liquidation by virtue of —
      (a) a resolution for voluntary winding-up; or
      (b) a winding-up order.
      (4) Subsection (3)(a) is subject to Section 39(4) and (5) (Application where Company in liquidation).
      (5) Subsection (3)(b) is subject to Section 39 (Application where Company in liquidation).