Insolvency of general partnerships—administration
Produced in partnership with Martha Maher retired barrister of St John’s Chambers
Insolvency of general partnerships—administration

The following Restructuring & Insolvency guidance note Produced in partnership with Martha Maher retired barrister of St John’s Chambers provides comprehensive and up to date legal information covering:

  • Insolvency of general partnerships—administration
  • Relevant legislation
  • Forms
  • Grounds for administration
  • Application for administration
  • Qualifying agricultural floating charge (QAFC)
  • Appointment of administrator by members
  • Effect of appointment
  • Process
  • Exit from administration

The regime for administration of general partnerships is very similar to the administration of insolvent companies (for companies, see Administration—overview). The administration procedure permits an administrator to be appointed to a partnership either by the court or out of court. The procedure requires adaptation to take account of a number of factors including the fact that a partnership is not a separate legal personality to its members and that it cannot give a floating charge, except for an agricultural floating charge in the context of a farming partnership.

Relevant legislation

The Enterprise Act 2002 amended the Insolvency Act 1986 (IA 1986) Part II to bring in a procedure for administration. This revised procedure is applicable to partnerships by the Insolvent Partnerships (Amendment) Order 2005, SI 2005/1516 (IPAO 2005) and took effect on 1 July 2005. Note also that some corrections were later effected by the Insolvent Partnerships (Amendment) Order 2006, SI 2006/622 (IPAO 2006).Insolvent Partnerships Order 1994, SI 1994/2421, art 6 and Sch 2Insolvent Partnerships (Amendment) Order 2005, SI 2005/1516Insolvent Partnerships (Amendment) Order 2006, SI 2006/622

Under the Insolvent Partnerships Order 1994, SI 1994/2421 (IPO 1994) as amended, the IR 2016 'as from time to time in force' apply to insolvent partnerships with such modifications as the context requires to give effect to the provisions of IA 1986 and the Company Directors Disqualification Act 1986 (see Practice Note: Partnerships and the disqualification regime).SI 1994/2421, art 18, Sch 10

Prior to 8 December 2017 (and subject to the transitional and savings provisions in the Insolvency (Miscellaneous Amendments) Regulations 2017), the IPO 1994 provided that the IR 1986, ‘as from time to