Qualifying floating charge holder definition

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Out-of-court appointments—who can apply and in what circumstances?

This Practice Note will cover:•the purpose of administration•who can apply for an administrator out of court, and in what circumstancesThis Practice Note does not cover:•administrations of partnerships or limited liability partnerships. See Practice Notes: Insolvency of general partnerships—administration and Administration of a Limited Liability Partnership•court appointments. See Practice Note: Court appointments—who can apply and in what circumstances?•the process for either court appointments or out-of-court appointments, see Practice Notes: Out-of-court administration appointments by a QFCH—the procedure, Out-of-court administration appointments by a company or its directors—the procedure and Court appointments of administrators—the procedureThe purpose of administrationAdministration is designed to be a rescue procedure. It is accompanied by a moratorium on proceedings (see Practice Note: The moratorium in administration), which gives a company some breathing space in which to allow for a sale or a restructuring without the threat of imminent winding up hanging over it. It is designed to achieve a better outcome for all creditors than a liquidation.The administration process received an overhaul as a result of the Enterprise Act 2002,...

Out-of-court administration appointments by a company or its directors—the procedure

Out-of-court appointmentsThis Practice Note covers:•the out-of-court appointment procedure for both company or director appointments, and•the documents that will be required to make the appointmentThe main provisions dealing with administrator appointments by a company or its directors using the out-of-court route are set out in paragraphs 22–34 of Schedule B1 to the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, rr 3.23–3.26 and is broadly made up of three steps:•Pre-appointment•Notice of intention to appoint•Notice of appointmentFor a checklist of the procedure, see: Appointment of an administrator using the out-of-court procedure by the director(s) or the company—checklist and timeline.For details of who is entitled to use this procedure and when it may be used, see Practice Note: Out-of-court appointments—who can apply and in what circumstances?For information on electronic filing (e-filing) of appointment documents at court, see: E-filing and appointment of administrators below.Pre-appointmentDecision making—directors appointingWhere the ‘directors’ are to make the administrator appointment under IA 1986, Sch B1, para 22(2), they can act by...

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[SCHEDULE B1 Administration]

(1)     For the purposes of this Act “administrator” of a company means a person appointed under this Schedule to manage the company's affairs, business and property.(2)     For the purposes of this Act—(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 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 Schedule, and(d)     a company does not cease to be in administration merely because an administrator vacates office (by reason of resignation, death or otherwise) or is removed from office.