The following Property guidance note provides comprehensive and up to date legal information covering:
An administrative receiver is appointed by the holder of a floating charge (often referred to as a debenture and which may also incorporate fixed charges over real property and other assets) to be the receiver or manager of all or substantially all of a company's property.
The ability to appoint an administrative receiver has been greatly restricted by the Enterprise Act 2002. With certain limited exceptions, an administrative receiver may only be appointed by the holder of a ‘qualifying floating charge’ created before 15 September 2003.
If none of the exceptions apply, the holder of a qualifying floating charge dated on or after 15 September 2003 can only apply for the appointment of an administrator.
The appointment of an administrative receiver does not disqualify the directors, but the management and control of the company’s business passes to the receiver who is entitled to act without interference from the directors.
An administrative receiver must be an authorised insolvency practitioner.
It is not possible to appoint an administrator out of court once an administrative receiver has been appointed and an application to court can only be made if:
the appointor consents, or
the court considers that the security under which the appointment was made would be liable to be released or discharged as a transaction at an undervalue, preference, extortionate credit transaction etc
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