The following Restructuring & Insolvency guidance note Produced in partnership with South Square and BDO LLP provides comprehensive and up to date legal information covering:
The Insolvency (England and Wales) Rules 2016, SI 2016/1024 (IR 2016) provide a revised scheme for decision-making in all insolvency procedures. The detailed provisions for decision-making are set out in Part 15 of the IR 2016, SI 2016/1024. For details of changes in this area, see Practice Notes: The Insolvency (England and Wales) Rules 2016—Part 3: Administration and The Insolvency (England and Wales) Rules 2016—Part 15 and 16: Creditors meetings and proxies [Archived].
The purpose of an administration is to rescue a company primarily, but not exclusively, as a going concern. The administrator is subject to a set of objectives which they are bound by statute to seek to achieve. Overall however, they must act expeditiously and efficiently in the interests of the creditors as a whole to achieve one or more of the objectives set out by statute, without undue expense or unnecessary application to court.
An administrator is under a duty to seek a decision from the company’s creditors if requested to do so by the creditors whose debts amount to at least 10% of the company’s total debts, or if ordered to do so by the court. If they fail to do so, they commit a criminal offence.
An administrator is
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