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56. Administrator's proposals

Past version: effective from 14/06/2015 - 13/06/2015
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(1) The administrator of a Company shall make a statement setting out proposals for achieving the purpose of administration.
(2) A statement under subsection (1) must, in particular —
(a) deal with such matters as may be prescribed; and
(b) where applicable, explain why the administrator of the Company thinks that the objective mentioned in Section 2(1)(a) or 2(1)(b) (Purpose of Administration) cannot be achieved.
(3) Proposals under this Section may include —
(a) a proposal for a compromise or arrangement to be sanctioned under Part 25 (Arrangements and Reconstructions) of the Companies Regulations 2015; or
(b) a proposal for a Deed of Company Arrangement.
(4) If the administrator of a Company proposes a Deed of Company Arrangement, the statement of his proposals shall include —
(a) a statement that in his opinion it would be in the creditors' interest for the Company to execute a Deed of Company Arrangement;
(b) the reasons for such opinion; and
(c) details of the proposed Deed of Company Arrangement.
(5) The administrator shall send a copy of the statement of his proposals —
(a) to the Registrar;
(b) to every creditor of the Company (other than an opted-out creditor) of whose claim and address he is aware; and
(c) to every member of the Company of whose address he is aware.
(6) The administrator shall comply with subsection (5) —
(a) as soon as is reasonably practicable after the Company enters administration; and
(b) in any event, before the end of the period of eight (8) weeks beginning with the day on which the Company enters administration.
(7) The administrator shall be taken to comply with subsection (5)(c) if he publishes in the prescribed manner a notice undertaking to provide a copy of the statement of proposals free of charge to any member of the Company who applies in writing to a specified address.
(8) An administrator commits a contravention and is liable to a fine at the relevant level set out in the Fines Schedule if he fails without reasonable excuse to comply with subsection (6).
(9) A period specified in this Section may be varied in accordance with Section 151 (Extension of time limit).