SCHEDULES
C1C2F1SCHEDULE B1ADMINISTRATION
Sch. B1 applied (with modifications) (1.10.2011) by Postal Services Act 2011 (c. 5), ss. 73, 87(1)(2), 93(3), Sch. 10 Pt. 1, Sch. 10 Pt. 2
Sch. B1 applied (with modifications) by S.R. 1995/225, Sch. 2 (as amended (19.12.2018) by The Banks and Building Societies (Priorities on Insolvency) Order 2018 (S.I. 2018/1244), arts. 1(2), 36 (with art. 3))
PROCESS OF ADMINISTRATION
Announcement of administrator's appointment
47
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.
4
The administrator shall send a notice of his appointment to the registrar 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 15, the date on which he receives notice under paragraph 21, and
c
in the case of an administrator appointed under paragraph 23, the date on which he receives notice under paragraph 33.
7
The High 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.
Statement of company's affairs
48
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 affidavit,
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.
49
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 48(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 High 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 48(1).
Administrator's proposals
50
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 4(1)(a) or (b) cannot be achieved.
3
Proposals under this paragraph may include—
a
a proposal for a voluntary arrangement under Part II of this Order (although this paragraph is without prejudice to Article 17(3));
4
The administrator shall send a copy of the statement of his proposals—
a
to the registrar,
b
to every creditor of the company 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 8 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 108.
Creditors' meeting
51
1
In this Schedule “creditors' meeting” means a meeting of creditors of a company summoned by the administrator—
a
in the prescribed manner, and
b
giving the prescribed period of notice to every creditor of the company of whose claim and address he is aware.
2
A period prescribed under sub-paragraph (1)(b) may be varied in accordance with paragraph 108.
3
A creditors' meeting shall be conducted in accordance with the rules.
Requirement for initial creditors' meeting
52
1
Each copy of an administrator's statement of proposals sent to a creditor under paragraph 50(4)(b) must be accompanied by an invitation to a creditors' meeting (an “initial creditors' meeting”).
2
The date set for an initial creditors' meeting must be—
a
as soon as is reasonably practicable after the company enters administration, and
b
in any event, within the period of 10 weeks beginning with the date on which the company enters administration.
3
An administrator shall present a copy of his statement of proposals to an initial creditors' meeting.
4
A period specified in this paragraph may be varied in accordance with paragraph 108.
5
An administrator commits an offence if he fails without reasonable excuse to comply with a requirement of this paragraph.
53
1
Paragraph 52(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 Article 150A(2)(a), or
c
that neither of the objectives specified in paragraph 4(1)(a) and (b) can be achieved.
2
But the administrator shall summon an initial creditors' meeting if it is requested—
a
by creditors of the company whose debts amount to at least 10 per cent. of the total debts of the company,
b
in the prescribed manner, and
c
in the prescribed period.
3
A meeting requested under sub-paragraph (2) must be summoned for a date in the prescribed period.
4
The period prescribed under sub-paragraph (3) may be varied in accordance with paragraph 108.
Business and result of initial creditors' meeting
54
1
An initial creditors' meeting to which an administrator's proposals are presented shall consider them and may—
a
approve them without modification, or
b
approve them with modification to which the administrator consents.
2
After the conclusion of an initial creditors' meeting the administrator shall as soon as is reasonably practicable report any decision taken to—
a
the High Court,
b
the registrar, 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).
Revision of administrator's proposals
55
1
This paragraph applies where—
a
an administrator's proposals have been approved (with or without modification) at an initial creditors' meeting,
b
the administrator proposes a revision to the proposals, and
c
the administrator thinks that the proposed revision is substantial.
2
The administrator shall—
a
summon a creditors' meeting,
b
send a statement in the prescribed form of the proposed revision with the notice of the meeting sent to each creditor,
c
send a copy of the statement, within the prescribed period, to each member of the company of whose address he is aware, and
d
present a copy of the statement to the meeting.
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.
5
A creditors' meeting to which a proposed revision is presented shall consider it and may—
a
approve it without modification, or
b
approve it with modification to which the administrator consents.
6
After the conclusion of a creditors' meeting the administrator shall as soon as is reasonably practicable report any decision taken to—
a
the High Court,
b
the registrar, 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).
Failure to obtain approval of administrator's proposals
56
1
This paragraph applies where an administrator reports to the High Court that—
a
an initial creditors' meeting has failed to approve the administrator's proposals presented to it, or
b
a creditors' meeting has failed to approve a revision of the administrator's proposals presented to it.
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 41(1)(b);
e
make any other order (including an order making consequential provision) that the Court thinks appropriate.
Further creditors' meetings
57
1
The administrator of a company shall summon a creditors' meeting if—
a
it is requested in the prescribed manner by creditors of the company whose debts amount to at least 10 per cent. of the total debts of the company, or
b
he is directed by the High Court to summon a creditors' meeting.
2
An administrator commits an offence if he fails without reasonable excuse to summon a creditors' meeting as required by this paragraph.
Creditors' committee
58
1
A creditors' meeting may establish a creditors' committee.
2
A creditors' committee shall carry out functions conferred on it by or under this Order.
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 7 days' notice, and
b
to provide the committee with information about the exercise of his functions.
Correspondence instead of creditors' meeting
59
1
Anything which is required or permitted by or under this Schedule to be done at a creditors' meeting may be done by correspondence between the administrator and creditors—
a
in accordance with the rules, and
b
subject to any prescribed condition.
2
A reference in this Schedule to anything done at a creditors' meeting includes a reference to anything done in the course of correspondence in reliance on sub-paragraph (1).
3
A requirement to hold a creditors' meeting is satisfied by conducting correspondence in accordance with this paragraph.
Sch. B1 inserted (27.3.2006) by Insolvency (Northern Ireland) Order 2005 (S.I. 2005/1455 (N.I. 10)), arts. 1(3), 3(2), Sch. 1 (with art. 4); S.R. 2006/21, art. 2 (with S.R. 2006/22, arts. 2-7)