How an administration comes to an end
How an administration comes to an end

The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:

  • How an administration comes to an end
  • Automatic end
  • Administration purpose achieved—paragraphs 79 and 80
  • Application to court to end administration
  • Moving from administration to dissolution—paragraph 84
  • Moving from administration to creditors voluntary liquidation—paragraph 83
  • Discharge from liability
  • Court-appointed administrators
  • Practical points

There are several ways in which an administration can come to an end depending on the specific circumstances of the administration. However, the starting point is that an administration should not last longer than 12 months. If longer is required, an extension must be sought with justifiable reasons such as the need to pursue litigation for the estate for example—see Practice Note: How can an administrator apply to extend the period of automatic termination of administration? Otherwise, the company should move into another procedure after 12 months, such as a company voluntary arrangement (CVA) or dissolution—see Practice Note: Administration—the process post-appointment. The administration will come to an automatic end at the end of 12 months unless another exit route is taken.

Automatic end

Where the administration comes to an end automatically, the administrator must file in court a notice of automatic end of administration complying with IR 2016, SI 2016/1024, r 3.55, using Form IR 2016, r 3.55 AM20 Notice of automatic end of administration (formerly form 2.30B), together with a final progress report as soon as reasonably practicable and, in any event within five business days of the end of the 12-month period. These documents must also be served on the Registrar of Companies, and all persons who received a copy of the administrator's proposals. See Practice Note: Administration—the