The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
The core of an administrator's role is to achieve one of the three purposes of the administration set out in the Schedule B1, paragraph 3 to the Insolvency Act 1986 (IA 1986). In doing this an administrator acts for all creditors, not just the entity that appointed them. An administrator can be appointed in or out of court. For more information on administration, including its purpose and effect, see Administration—overview.
The role, powers and duties of an appointed administrator are set out in IA 1986 and the Insolvency Rules 2016, SI 2016/1024 (IR 2016).
While the Enterprise Act 2002 (EnA 2002) significantly amended the old administration regime, an administrator's 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 EnA 2002, s 249), such as building societies and rail companies.
Consequently, an administrator's powers and duties are set out both in:
IA 1986, ss 14–27 (the old regime), and
IA 1986, Sch B1, paras 45–80 (the 'new' regime)
This Practice Note focuses on the provisions under the new regime.
An administrator acts as an agent for the company. They therefore do not assume personal liability for any contracts they enter into while
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