Role, powers, functions and duties of an administrator
Role, powers, functions and duties of an administrator

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

  • Role, powers, functions and duties of an administrator
  • The administrator's role and function
  • The administrator's duties
  • Statements of Insolvency Practice (SIPs)
  • The administrator's powers
  • The administrator’s discharge

The role, powers and duties of an appointed administrator are set out in the Insolvency Act 1986 (IA 1986) and Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. While the Enterprise Act 2002 significantly amended the old administration regime, the administrators' powers and duties under the old regime were not overruled entirely. They still apply to all administrations pre-September 2003, and to administrations of certain entities (set out under the Enterprise Act 2000, s 249), such as building societies, rail companies etc. Consequently, the administrator's powers and duties are set out both in Sections 14–27 (the old regime) and Sch B1 paras 45-58 (duties) and 59-80 (powers) of the amended Act. This Practice Note focuses on the new regime only.

The administrator's role and function

The administrator’s objective is to achieve one of the three purposes of the administration as set out in IA 1986, Sch B1 para 3. In doing this the administrator acts for all creditors, not just the entity that appointed them. They are an officer of the court, whether appointed by the court or otherwise, and therefore have to comply with the duty applicable to officers of the court as set out in Ex parte James (1874) to act honourably and fairly. In Lehman Brothers Australia Ltd (in liquidation), the Court of Appeal held that the fairness test is an

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