• Chapter 6 Chapter 6 — Effect of Administration

    • 42. Dismissal of pending winding-up petition

      (1) A petition for the winding-up of a Company —
      (a) shall be dismissed on the making of an administration order in respect of the Company; and
      (b) shall be suspended while the Company is in administration following an appointment under Section 21 (Power to appoint).
      (2) Subsection (1)(b) does not apply to a petition presented under Section 203 (Petition for winding-up by the Financial Services Regulator).
      (3) Where an administrator of a Company becomes aware that a petition was presented under a provision referred to in subsection (2) before his appointment, he shall apply to the Court for directions under Section 95(7) (General powers).

    • 43. Dismissal of administrative or other receiver

      (1) When an administration order takes effect in respect of a Company any administrative receiver of the Company shall vacate office.
      (2) Where a Company is in administration, any receiver of part of the Company's property shall vacate office if the administrator of the Company requires him to.
      (3) Where an administrative receiver or receiver vacates office under subsection (1) or (2) his remuneration shall be charged on and paid out of any property of the Company which was in his custody or under his control immediately before he vacated office.
      (4) In the application of subsection (3) —
      (a) "remuneration" includes expenses properly incurred and any indemnity to which the administrative receiver or receiver is entitled out of the property of the Company;
      (b) the charge imposed takes priority over security held by the person by whom or on whose behalf the administrative receiver or receiver was appointed; and
      (c) the provision for payment is subject to Section 45 (Moratorium on other legal process).

    • 44. Moratorium on Insolvency Proceedings

      (1) This Section applies to a Company in administration.
      (2) No resolution may be passed for the winding-up of the Company.
      (3) No order may be made for the winding-up of the Company.
      (4) Subsection (3) does not apply to an order made on a petition presented under Section 203 (Petition for winding-up by the Financial Services Regulator).
      (5) If a petition presented under a provision referred to in subsection (4) comes to the attention of the administrator of the Company, he shall apply to the Court for directions under Section 95(7) (General powers).

    • 45. Moratorium on other legal process

      (1) This Section applies to a Company in administration.
      (2) No step may be taken to enforce security over the Company's property except —
      (a) with the consent of the administrator of the Company; or
      (b) with the permission of the Court.
      (3) No step may be taken to repossess goods in the Company's possession under a hire-purchase agreement except —
      (a) with the consent of the administrator of the Company; or
      (b) with the permission of the Court.
      (4) A landlord may not exercise a right of re-entry in relation to premises let to the Company except —
      (a) with the consent of the administrator of the Company; or
      (b) with the permission of the Court.
      (5) No legal process (including legal proceedings) may be instituted or continued against the Company or property of the Company except —
      (a) with the consent of the administrator of the Company; or
      (b) with the permission of the Court.
      (6) An administrative receiver of the Company may not be appointed.
      (7) Where the Court gives permission for a transaction under this Section it may impose a condition on, or a requirement in connection with, the transaction.
      (8) In this subsection "landlord" includes a person to whom rent is payable.

    • 46. Interim moratorium

      (1) This Section applies where an administration application in respect of a Company has been made and —
      (a) the application has not yet been granted or dismissed; or
      (b) the application has been granted but the administration order has not yet taken effect.
      (2) This Section also applies from the time when a copy of notice of intention to appoint an administrator of a Company under Section 21 (Power to appoint) is filed with the Court until —
      (a) the appointment of the administrator of the Company takes effect; or
      (b) the period of five business days beginning with the date of filing expires without an administrator of the Company having been appointed.
      (3) Subsection (2) has effect in relation to a notice of intention to appoint only if it is in the prescribed form.
      (4) This Section also applies from the time when a copy of a notice of intention to appoint an administrator of a Company is filed with the Court under Section 31(4) (Notice of intention to appoint) until —
      (a) the appointment of the administrator of the Company takes effect; or
      (b) the period specified in Section 31(9) (Notice of intention to appoint) expires without an administrator of the Company having been appointed.
      (5) The provisions of Sections 44 (Moratorium on Insolvency Proceedings) and 45 (Moratorium on other legal process) shall apply (ignoring any reference to the consent of the administrator of the Company).
      (6) If there is an administrative receiver of the Company when the administration application is made, the provisions of Sections 44 (Moratorium on Insolvency Proceedings) and 45 (Moratorium on other legal process) shall not begin to apply by virtue of this Section until the person by or on behalf of whom the receiver was appointed consents to the making of the administration order.
      (7) This Section does not prevent or require the permission of the Court for —
      (a) the presentation of a petition for the winding-up of the Company under a provision mentioned in Section 44(4) (Moratorium on Insolvency Proceedings);
      (b) the appointment of an administrator of the Company under Section 21 (Power to appoint);
      (c) the appointment of an administrative receiver of the Company; or
      (d) the carrying out by an administrative receiver (whenever appointed) of his functions.

    • 47. Publicity

      (1) While a Company is in administration, every business document issued by or on behalf of the Company or the administrator of the Company, and all the Company's websites, must state —
      (a) the name of the administrator of the Company; and
      (b) that the affairs, business and property of the Company are being managed by the administrator of the Company.
      (2) Any of the following persons commits a contravention and is liable to a fine at the relevant level set out in the Fines Schedule if without reasonable excuse the person authorises or permits a contravention of subsection (1) —
      (a) the administrator of the Company;
      (b) an officer of the Company; and
      (c) the Company.
      (3) While a Company is subject to a Deed of Company Arrangement, every business document issued by or on behalf of the Company, and all the Company's websites must state that the Company is subject to a Deed of Company Arrangement, unless the Court otherwise grants leave.
      (4) Any of the following persons commits a contravention and is liable to a fine at the relevant level set out in the Fines Schedule if without reasonable excuse the person authorises or permits a contravention of subsection (3) —
      (a) the administrator of the Deed of Company Arrangement;
      (b) an officer of the Company; and
      (c) the Company.
      (5) The Court may only grant leave under subsection (3) on the application of the administrator of the Deed of Company Arrangement or other interested party and only if it is satisfied that the granting of such leave will not result in a significant risk to the interests of the Company's creditors (including contingent or prospective creditors) as a whole.
      (6) In subsections (1) and (3) "business document" means —
      (a) an invoice;
      (b) an order for goods or services;
      (c) a business letter; and
      (d) an order form,
      whether in hard copy, electronic or any other form.