SCHEDULES
C16C12C29C14C15C17C19C18C22C23C24F2SCHEDULE B1 ADMINISTRATION
Pt. 2 (including Sch. B1) applied (with modifications) (1.12.1994) by The Insolvent Partnerships Order 1994 (S.I. 1994/2421), art. 6(1), Sch. 2 (as amended (1.7.2005) by S.I. 2005/1516, art. 7, Sch. 1; (1.4.2013) by S.I. 2013/472, Sch. 2 para. 11(b)); (1.1.2015) by S.I. 2014/3486, arts. 1(2), 13 (with art. 3); (6.4.2017) by S.I. 2017/540, reg. 1, Sch. 2 para. 6 (with reg. 4); (19.12.2018) by S.I. 2018/1244, arts. 1(2), 19(2)(3) (with art. 3)); and (28.12.2020) (temp.) by S.I. 2020/1350, regs. 1(4), 121(3))
Pt. 2 (including Sch. B1) applied (with modifications) (1.2.2011) by The Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) Order 2010 (S.I. 2010/3023), art. 2, Sch. (with art. 6) (as amended (1.4.2013) by S.I. 2013/472, Sch. 2 para. 195(c); and (7.4.2017) by S.I. 2017/400, regs. 1(2), 9)
Sch. B1 applied in part (with modifications) (5.10.2004) by Energy Act 2004 (c. 20), ss. 159(1), 198, Sch. 20 Pts. 1-3; S.I. 2004/2575, art. 2(1), Sch. 1 (as amended (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 9 para. 27 (with ss. 2(2), 5(2)))
Pt. 2 (including Sch. B1) applied (with modifications) (6.4.2014) by The Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) Order 2014 (S.I. 2014/229), art. 2(2), Sch. 1 (as renamed (1.8.2014) by S.I. 2014/1815, Sch. para 33; and as amended (1.8.2014) by S.I. 2014/1822, art. 5; and (13.3.2018) by S.I. 2018/208, regs. 1(3), 15(3)(b))
Sch. B1 applied in part (with modifications) (1.10.2011) by Postal Services Act 2011 (c. 5), ss. 73, 93(2)(3), Sch. 10 Pts. 1, 2; S.I. 2011/2329, art. 3 (with arts. 4, 5) (as amended (6.4.2017) by S.I. 2017/540, reg. 1, Sch. 1 para. 6(2) (with reg. 4))
Sch. B1 applied (with modifications) by S.I. 2010/3023, art. 2, Sch. (as amended (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 12 (with reg. 22))
Sch. B1 specified provisions applied (with modifications) by S.I. 2012/3013, Sch. 2 Pt. 1 (as inserted (4.7.2018) by The Insolvency of Registered Providers of Social Housing Regulations 2018 (S.I. 2018/728), regs. 1, 3(6), Sch. 2)
Sch. B1 specified provisions applied (with modifications) (4.7.2018) by The Insolvency of Registered Providers of Social Housing Regulations 2018 (S.I. 2018/728), regs. 1, 2(2), Sch. 1 Pt. 1
Sch. B1 specified provisions applied (with modifications) (13.7.2018 for E.W.) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 6 para. 5; S.I. 2018/848, art. 2(b) (as amended by S.I. 2017/400, regs. 1(2), 6(a)(c); and S.I. 2018/208, regs. 1(3), 6(a))
Sch. B1 specified provisions applied (with modifications) (31.1.2019) by Technical and Further Education Act 2017 (c. 19), s. 47(2), Sch. 3; S.I. 2018/1161, reg. 3(c) (as amended (26.12.2023) by 2023 c. 55, s. 255(2)(c), Sch. 4 para. 210(a) (with s. 247))
Sch. B1 specified provisions applied (with modifications) (31.1.2019) by Technical and Further Education Act 2017 (c. 19), s. 47(2), Sch. 4; S.I. 2018/1161, reg. 3(d) (as amended: (28.6.2022) by 2022 c. 21, ss. 25(4), 36(2); and (26.12.2023) by 2023 c. 55, s. 255(2)(c), Sch. 4 para. 211(a) (with s. 247))
PROCESS OF ADMINISTRATION
C1C2046C23C24Announcement of administrator’s appointment
1
This paragraph applies where a person becomes the administrator of a company.
2
As soon as is reasonably practicable the administrator shall—
a
send a notice of his appointment to the company, and
b
publish a notice of his appointment in the prescribed manner.
3
As soon as is reasonably practicable the administrator shall—
a
obtain a list of the company’s creditors, and
b
send a notice of his appointment to each creditor of whose claim and address he is aware.
C254
The administrator shall send a notice of his appointment to the registrar of companies before the end of the period of 7 days beginning with the date specified in sub-paragraph (6).
5
The administrator shall send a notice of his appointment to such persons as may be prescribed before the end of the prescribed period beginning with the date specified in sub-paragraph (6).
6
The date for the purpose of sub-paragraphs (4) and (5) is—
a
in the case of an administrator appointed by administration order, the date of the order,
b
in the case of an administrator appointed under paragraph 14, the date on which he receives notice under paragraph 20, and
c
in the case of an administrator appointed under paragraph 22, the date on which he receives notice under paragraph 32.
7
The court may direct that sub-paragraph (3)(b) or (5)—
a
shall not apply, or
b
shall apply with the substitution of a different period.
8
A notice under this paragraph must—
a
contain the prescribed information, and
b
be in the prescribed form.
9
An administrator commits an offence if he fails without reasonable excuse to comply with a requirement of this paragraph.
C2C2047Statement of company’s affairs
1
As soon as is reasonably practicable after appointment the administrator of a company shall by notice in the prescribed form require one or more relevant persons to provide the administrator with a statement of the affairs of the company.
2
The statement must—
a
be verified by a statement of truth in accordance with Civil Procedure Rules,
b
be in the prescribed form,
c
give particulars of the company’s property, debts and liabilities,
d
give the names and addresses of the company’s creditors,
e
specify the security held by each creditor,
f
give the date on which each security was granted, and
g
contain such other information as may be prescribed.
3
In sub-paragraph (1) “relevant person” means—
a
a person who is or has been an officer of the company,
b
a person who took part in the formation of the company during the period of one year ending with the date on which the company enters administration,
c
a person employed by the company during that period, and
d
a person who is or has been during that period an officer or employee of a company which is or has been during that year an officer of the company.
4
For the purpose of sub-paragraph (3) a reference to employment is a reference to employment through a contract of employment or a contract for services.
5
In Scotland, a statement of affairs under sub-paragraph (1) must be a statutory declaration made in accordance with the Statutory Declarations Act 1835 (c. 62) (and sub-paragraph (2)(a) shall not apply).
C348
1
A person required to submit a statement of affairs must do so before the end of the period of 11 days beginning with the day on which he receives notice of the requirement.
2
The administrator may—
a
revoke a requirement under paragraph 47(1), or
b
extend the period specified in sub-paragraph (1) (whether before or after expiry).
3
If the administrator refuses a request to act under sub-paragraph (2)—
a
the person whose request is refused may apply to the court, and
b
the court may take action of a kind specified in sub-paragraph (2).
4
A person commits an offence if he fails without reasonable excuse to comply with a requirement under paragraph 47(1).
C4C13C2049C23C24Administrator’s proposals
1
The administrator of a company shall make a statement setting out proposals for achieving the purpose of administration.
2
A statement under sub-paragraph (1) must, in particular—
a
deal with such matters as may be prescribed, and
b
where applicable, explain why the administrator thinks that the objective mentioned in paragraph 3(1)(a) or (b) cannot be achieved.
3
Proposals under this paragraph may include—
a
a proposal for a voluntary arrangement under Part I of this Act (although this paragraph is without prejudice to section 4(3));
C264
The administrator shall send a copy of the statement of his proposals—
a
to the registrar of companies,
b
to every creditor of the company F4, other than an opted-out creditor, of whose claim and address he is aware, and
c
to every member of the company of whose address he is aware.
5
The administrator shall comply with sub-paragraph (4)—
a
as soon as is reasonably practicable after the company enters administration, and
b
in any event, before the end of the period of eight weeks beginning with the day on which the company enters administration.
6
The administrator shall be taken to comply with sub-paragraph (4)(c) if he publishes in the prescribed manner a notice undertaking to provide a copy of the statement of proposals free of charge to any member of the company who applies in writing to a specified address.
7
An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (5).
8
A period specified in this paragraph may be varied in accordance with paragraph 107.
F550
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C551F6Consideration of administrator's proposals by creditors
F31
The administrator must seek a decision from the company's creditors as to whether they approve the proposals set out in the statement made under paragraph 49(1).
2
The initial decision date for that decision must be within the period of 10 weeks beginning with the day on which the company enters administration.
3
The “initial decision date” for that decision—
a
if the decision is initially sought using the deemed consent procedure, is the date on which a decision will be made if the creditors by that procedure approve the proposals, and
b
if the decision is initially sought using a qualifying decision procedure, is the date on or before which a decision will be made if it is made by that qualifying decision procedure (assuming that date does not change after the procedure is instigated).
4
A period specified in this paragraph may be varied in accordance with paragraph 107.
5
An administrator commits an offence if he fails without reasonable excuse to comply with a requirement of this paragraph.
C652
1
Paragraph 51(1) shall not apply where the statement of proposals states that the administrator thinks—
a
that the company has sufficient property to enable each creditor of the company to be paid in full,
b
that the company has insufficient property to enable a distribution to be made to unsecured creditors other than by virtue of section 176A(2)(a), or
c
that neither of the objectives specified in paragraph 3(1)(a) and (b) can be achieved.
2
But the administrator shall F7seek a decision from the company's creditors as to whether they approve the proposals set out in the statement made under paragraph 49(1) if requested to do so —
a
by creditors of the company whose debts amount to at least 10% of the total debts of the company,
b
in the prescribed manner, and
c
in the prescribed period.
F83
Where a decision is sought by virtue of sub-paragraph (2) the initial decision date (as defined in paragraph 51(3)) must be within the prescribed period.
4
The period prescribed under sub-paragraph (3) may be varied in accordance with paragraph 107.
C753C23C24F9Creditors' decision
F101
The company's creditors may approve the administrator's proposals—
a
without modification, or
b
with modification to which the administrator consents.
C272
F11The administrator shall as soon as is reasonably practicable report any decision taken F12by the company's creditors to—
a
the court,
b
the registrar of companies, and
c
such other persons as may be prescribed.
3
An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (2).
C8C2154C23C24Revision of administrator’s proposals
1
This paragraph applies where—
a
an administrator’s proposals have been approved (with or without modification) F13by the company's creditors,
b
the administrator proposes a revision to the proposals, and
c
the administrator thinks that the proposed revision is substantial.
2
The administrator shall—
F14a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
c
send a copy of the statement, within the prescribed period, to each member of the company of whose address he is aware, and
F17d
seek a decision from the company's creditors as to whether they approve the proposed revision.
3
The administrator shall be taken to have complied with sub-paragraph (2)(c) if he publishes a notice undertaking to provide a copy of the statement free of charge to any member of the company who applies in writing to a specified address.
4
A notice under sub-paragraph (3) must be published—
a
in the prescribed manner, and
b
within the prescribed period.
F185
The company's creditors may approve the proposed revision—
a
without modification, or
b
with modification to which the administrator consents.
C286
F19The administrator shall as soon as is reasonably practicable report any decision taken F20by the company's creditors to—
a
the court,
b
the registrar of companies, and
c
such other persons as may be prescribed.
7
An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (6).
C955Failure to obtain approval of administrator’s proposals
F211
This paragraph applies where an administrator—
a
reports to the court under paragraph 53 that a company's creditors have failed to approve the administrator's proposals, or
b
reports to the court under paragraph 54 that a company's creditors have failed to approve a revision of the administrator's proposals.
2
The court may—
a
provide that the appointment of an administrator shall cease to have effect from a specified time;
b
adjourn the hearing conditionally or unconditionally;
c
make an interim order;
d
make an order on a petition for winding up suspended by virtue of paragraph 40(1)(b);
e
make any other order (including an order making consequential provision) that the court thinks appropriate.
C1056Further creditors’ F22decisions
1
The administrator of a company shall F23seek a decision from the company's creditors on a matter if—
a
it is requested in the prescribed manner by creditors of the company whose debts amount to at least 10% of the total debts of the company, or
b
he is directed by the court to F24do so.
2
An administrator commits an offence if he fails without reasonable excuse to F25seek a decision from the company's creditors on a matter as required by this paragraph.
C1157Creditors’ committee
1
F26The company's creditors may, in accordance with the rules, establish a creditors’ committee.
2
A creditors’ committee shall carry out functions conferred on it by or under this Act.
3
A creditors’ committee may require the administrator—
a
to attend on the committee at any reasonable time of which he is given at least seven days’ notice, and
b
to provide the committee with information about the exercise of his functions.
F2758
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Sch. B1 inserted (15.9.2003) by 2002 c. 40, ss. 248(2), 279, Sch. 16 (with s. 249(1)-(3)(6)); S.I. 2003/2093, art. 2(1), Sch. 1 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))