F1F2F3PART IIIADMINISTRATION ORDERS

Annotations:
Amendments (Textual)
F1

Pt. III art. 21 substituted (27.3.2006) for Pt. III arts. 21 - 39 by Insolvency (Northern Ireland) Order 2005 (S.I. 2005/1455 (N.I. 10)), arts. 1(3), 3(1) (with art. 4); S.R. 2006/21, art. 2 (with S.R. 2006/22arts. 2 - 7); specified substituted provisions amended (1.10.2009) by S.I. 2009/1941, arts. 2(1), 8, Sch. 1 para. 109 (with art. 10); and by S.I. 2009/1972, regs. 4(d)(iii), 7(b)

F2

mod. by S.I. 2005/1644

Making, etc., of administration order

Application for order22

1 F4

An application to the High Court for an administration order shall be by petition presented either by the company or the directors, or by a creditor or creditors (including any contingent or prospective creditor or creditors),F5 or by the chief clerk in exercise of the power conferred by section 35(4A) of the Criminal Justice Act (Northern Ireland) 1945 (enforcement of fines imposed on companies) or a clerk of petty sessions in exercise of the power conferred by Article 92A of the Magistrates' Courts (Northern Ireland) Order 1981 (enforcement of fines imposed on companies) or by all or any of those parties, together or separately.

2

Where a petition is presented to the High Court—

a

notice of the petition shall be given forthwith to any person who has appointed, or is or may be entitled to appoint, an administrative receiver of the company, and to such other persons as may be prescribed, and

b

the petition shall not be withdrawn except with the leave of the Court.

3

Where the High Court is satisfied that there is an administrative receiver of the company, the Court shall dismiss the petition unless it is also satisfied either—

a

that the person by whom or on whose behalf the receiver was appointed has consented to the making of the order, or

b

that, if an administration order were made, any security by virtue of which the receiver was appointed would—

F6i

be liable to be released or discharged under Articles 202 to 204 (transactions at an undervalue and preferences), or

ii

be avoided under Article 207 (avoidance of floating charges).

4

Subject to paragraph (3), on hearing a petition the High Court may dismiss it, or adjourn the hearing conditionally or unconditionally, or make an interim order or any other order that it thinks fit.

5

Without prejudice to the generality of paragraph (4), an interim order under that paragraph may restrict the exercise of any powers of the directors or of the company (whether by reference to the consent of the High Court or of a person qualified to act as an insolvency practitioner in relation to the company, or otherwise).