• Chapter 5 Chapter 5 — Administration Application (special cases)

    • 37. Application by holder of qualifying charge

      (1) This Section applies where an administration application in respect of a Company —
      (a) is made by the holder of a qualifying charge in respect of the Company's property; and
      (b) includes a statement that the application is made in reliance on this Section.
      (2) The Court may make an administration order —
      (a) whether or not satisfied that the Company is or is likely to become unable to pay its debts; but
      (b) only if satisfied that the applicant could appoint an administrator of the Company under Section 21 (Power to appoint).

    • 38. Intervention by holder of qualifying charge

      (1) This Section applies where —
      (a) an administration application in respect of a Company is made by a person who is not the holder of a qualifying charge in respect of the Company's property; and
      (b) the holder of a qualifying charge in respect of the Company's property applies to the Court to have a specified person appointed as administrator of the Company (and not the person specified by the administration applicant).
      (2) The Court shall grant an application under subsection (1)(b) unless the Court thinks it right to refuse the application because of the particular circumstances of the case.

    • 39. Application where Company in liquidation

      (1) Subsections (2) and (3) apply where the holder of a qualifying charge in respect of a Company's property could appoint an administrator of the Company under Section 21 (Power to appoint) but for Section 5(3)(b) (General restrictions).
      (2) The holder of the qualifying charge may make an administration application.
      (3) If the Court makes an administration order on hearing an application made by virtue of subsection (2) —
      (a) the Court shall discharge the winding-up order;
      (b) the Court shall make provision for such matters as may be prescribed;
      (c) the Court may make other consequential provision;
      (d) the Court shall specify which of the powers under this Part 1 (Administration) are to be exercisable by the administrator of the Company; and
      (e) this Part 1 (Administration) shall have effect with such modifications as the Court may specify.
      (4) The liquidator of a Company may make an administration application.
      (5) If the Court makes an administration order on hearing an application made by virtue of subsection (4) —
      (a) the Court shall discharge any winding-up order in respect of the Company;
      (b) the Court shall make provision for such matters as may be prescribed;
      (c) the Court may make other consequential provision;
      (d) the Court shall specify which of the powers under this Part 1 (Administration) are to be exercisable by the administrator of the Company; and
      (e) this Part 1 (Administration) shall have effect with such modifications as the Court may specify.

    • 40. Application where Company in liquidation

      (1) Where an administration application is made under Section 39 (Application where Company in liquidation), the witness statement required by Section 11 (Content of administration application and witness statement) shall contain —
      (a) full details of the existing Insolvency Proceedings, the name and address of the liquidator, the date he was appointed and by whom;
      (b) the reasons why it has subsequently been considered appropriate that an administration application should be made;
      (c) all other matters that would, in the opinion of the applicant, assist the Court in considering the need to make provisions in respect of matters arising in connection with the liquidation; and
      (d) the details required in Section 11(2) (Content of administration application and witness statement).
      (2) Where the application is made by the holder of a qualifying charge he shall set out sufficient evidence in the witness statement required by Section 11 (Content of administration application and witness statement) to satisfy the Court that he is entitled to appoint an administrator of the Company under Section 21 (Power to appoint).

    • 41. Effect of administrative receivership

      (1) Where there is an administrative receiver of a Company the Court must dismiss an administration application in respect of the Company unless —
      (a) the person by or on behalf of whom the receiver was appointed consents to the making of the administration order; or
      (b) the Court thinks that the security by virtue of which the receiver was appointed would be liable to be released or discharged under Sections 257 (Transactions at an undervalue) to 259 (Relevant time) if an administration order were made.
      (2) Subsection (1) applies whether the administrative receiver is appointed before or after the making of the administration application.