SCHEDULES

F1SCHEDULE B1 ADMINISTRATION

REPLACING ADMINISTRATOR

Vacation of office: discharge from liability

F298

(1)

Where a person ceases to be the administrator of a company (whether because he vacates office by reason of resignation, death or otherwise, because he is removed from office or because his appointment ceases to have effect) he is discharged from liability in respect of any action of his as administrator.

(2)

The discharge provided by sub-paragraph (1) takes effect—

(a)

in the case of an administrator who dies, on the filing with the court of notice of his death,

(b)

in the case of an administrator appointed under paragraph 14 or 22 F3who has not made a statement under paragraph 52(1)(b), at a time appointed by resolution of the creditors’ committee or, if there is no committee, by F4decision of the creditors,

F5(ba)

in the case of an administrator appointed under paragraph 14 or 22 who has made a statement under paragraph 52(1)(b), at a time decided by the relevant creditors, or

(c)

in any case, at a time specified by the court.

(3)

F6For the purposes of sub-paragraph (2)(ba), the “relevant creditors” of a company are—

(a)

each secured creditor of the company, or

(b)

if the administrator has made a distribution to preferential creditors or thinks that a distribution may be made to preferential creditors—

(i)

each secured creditor of the company, and

F7(ii)

the preferential creditors of the company.

F8(3A)

In a case where the administrator is removed from office, a decision of the creditors for the purposes of sub-paragraph (2)(b), or of the preferential creditors for the purposes of sub-paragraph (2)(ba), must be made by a qualifying decision procedure.

(4)

Discharge—

(a)

applies to liability accrued before the discharge takes effect, and

(b)

does not prevent the exercise of the court’s powers under paragraph 75.