Point in time view as at 27/04/2020.
Insolvency Act 1986, Paragraph 3 is up to date with all changes known to be in force on or before 09 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
[F13(1)The administrator of a company must perform his functions with the objective of—
(a)rescuing the company as a going concern, or
(b)achieving a better result for the company’s creditors as a whole than would be likely if the company were wound up (without first being in administration), or
(c)realising property in order to make a distribution to one or more secured or preferential creditors.
(2)Subject to sub-paragraph (4), the administrator of a company must perform his functions in the interests of the company’s creditors as a whole.
(3)The administrator must perform his functions with the objective specified in sub-paragraph (1)(a) unless he thinks either—
(a)that it is not reasonably practicable to achieve that objective, or
(b)that the objective specified in sub-paragraph (1)(b) would achieve a better result for the company’s creditors as a whole.
(4)The administrator may perform his functions with the objective specified in sub-paragraph (1)(c) only if—
(a)he thinks that it is not reasonably practicable to achieve either of the objectives specified in sub-paragraph (1)(a) and (b), and
(b)he does not unnecessarily harm the interests of the creditors of the company as a whole.]
Textual Amendments
F1Sch. 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))
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