| Commentary

75.1 Overview

| Commentary

75 Purpose of administration

75.1 Overview

The second threshold requirement, applicable in all cases, is that the administrator must perform his functions with the objective of achieving the purpose of administration, meaning the statutory purpose set out in the legislation1. On an application for an administration order, the court may make an administration order only if satisfied that the administration order is reasonably likely to achieve the purpose of administration2. Equally, on an out-of-court appointment, whether by the holder of a qualifying floating charge or by the company (or its directors), the notice of appointment must be accompanied by a statement

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