Removal and replacement of an administrator
Removal and replacement of an administrator

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

  • Removal and replacement of an administrator
  • Death, resignation or ceasing to be qualified to act
  • Death of the administrator
  • Resignation of the administrator
  • Administrator ceasing to be qualified
  • Discharge from office—the administrator's expenses and liabilities
  • Will the administrator be paid once discharged?

This Practice Note focuses on the forced removal of an administrator from office, although other reasons for vacation of office by an administrator are touched upon briefly. It is possible to remove and/or replace an administrator, but how this occurs will depend on the circumstances.

Who may apply to remove?

If the office of administrator is vacant, and where the administrator was appointed out of court, the entity that appointed them may replace that administrator out of court following the procedure set out in the Insolvency Act 1986 (IA 1986).

If the appointment was by a qualifying floating charge holder (QFCH) then any prior ranking QFCH is entitled to remove an administrator and substitute them with an office-holder of their choice.

If the administrator was appointed out of court by the company or its directors, and there was no prior ranking QFCH, then an administrator may be substituted by a creditors’ meeting, but only where the new administrator’s consent to act is presented to the meeting prior to the replacement, or the administrator may be replaced by a decision of the creditors made by a qualifying decision procedure. The decision has effect only if, before the decision is made, the new administrator has consented to act in writing.

If necessary, a court may make an order for the removal and replacement of an administrator following an application by either

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