How to place a foreign company into administration in the UK
Produced in partnership with Edoardo Lupi of South Square
How to place a foreign company into administration in the UK

The following Restructuring & Insolvency guidance note Produced in partnership with Edoardo Lupi of South Square provides comprehensive and up to date legal information covering:

  • How to place a foreign company into administration in the UK
  • Brexit impact
  • Jurisdiction
  • Practical steps
  • Risks
  • Attraction of administration regime for foreign companies

Brexit impact

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. References to exit day in many Brexit SIs are to be read as reference to IP completion day (Implementation Period completion day, defined in clause 39 as 31 December 2020 at 11.00 pm) (unless that provision is expressly disapplied by the SI in question). For further details, see News Analysis: Brexit—impact of the Withdrawal Agreement and European Union (Withdrawal Agreement) Act 2020 for R&I lawyers and Brexit Bulletin—key updates, research tips and resources. For further details of the impact on the Recast Regulation on Insolvency, see Practice Note: Brexit—impact on Recast Regulation on Insolvency. In particular, for the impact on administrations, see Practice Note: Brexit—impact on administration.

Jurisdiction

Subject to section 426 of the Insolvency Act 1986 (IA 1986) (see Practice Note: Court-to-court assistance and Insolvency Act 1986, s 426), a company may only enter administration under IA 1986, Sch B1 (Schedule B1) if it is a company within the meaning of IA 1986, Sch B1, para 111(1A).

IA 1986, Sch B1, para 111(1A) defines a company for the purposes of Schedule B1 as:

  1. a company registered