Commentary

D6.721 Administration

Corporate tax
Corporate tax | Commentary

D6.721 Administration

Corporate tax | Commentary

D6.721 Administration

Status of an administrator

The administrator must perform his functions with the objectives first of rescuing the company as a going concern, secondly of achieving a better result for the company's creditors as a whole than would be likely if the company were simply wound up, and thirdly of realising property in order to make a distribution to one or more unsecured or preferential creditors1.

These are not a choice but a hierarchy. The rescue of the company is the priority.

An administrator is an officer of the court whether or not he has been appointed by the court2 and is bound by the rule in Ex parte James3, which obliges him to act honourably and fairly. He is an agent of the company4 and he must perform his functions as quickly and efficiently as is reasonably

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