- Latest available (Revised)
- Point in Time (09/02/2018)
- Original (As enacted)
Version Superseded: 13/03/2018
Point in time view as at 09/02/2018.
Insolvency Act 1986, FUNCTIONS OF ADMINISTRATOR is up to date with all changes known to be in force on or before 12 September 2024. 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.
Changes and effects yet to be applied by the editorial team are only applicable when viewing the latest version or prospective version of legislation. They are therefore not accessible when viewing legislation as at a specific point in time. To view the ‘Changes to Legislation’ information for this provision return to the latest version view using the options provided in the ‘What Version’ box above.
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))
59(1)The administrator of a company may do anything necessary or expedient for the management of the affairs, business and property of the company.
(2)A provision of this Schedule which expressly permits the administrator to do a specified thing is without prejudice to the generality of sub-paragraph (1).
(3)A person who deals with the administrator of a company in good faith and for value need not inquire whether the administrator is acting within his powers.
Modifications etc. (not altering text)
C1Sch. B1 para. 59 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
60[F2(1)] The administrator of a company has the powers specified in Schedule 1 to this Act.E+W+S
[F3(2)But the power to sell, hire out or otherwise dispose of property is subject to any regulations that may be made under paragraph 60A.]
Textual Amendments
F2Sch. B1 para. 60 renumbered as Sch. B1 para. 60(1) (26.5.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 129(2), 164(3)(i)(ii)
F3Sch. B1 para. 60(2) inserted (26.5.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 129(3), 164(3)(i)(ii)
Modifications etc. (not altering text)
C2Sch. B1 para. 60 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
[F460A(1)The Secretary of State may by regulations make provision for—E+W+S
(a)prohibiting, or
(b)imposing requirements or conditions in relation to,
the disposal, hiring out or sale of property of a company by the administrator to a connected person in circumstances specified in the regulations.
(2)Regulations under this paragraph may in particular require the approval of, or provide for the imposition of requirements or conditions by—
(a)creditors of the company,
(b)the court, or
(c)a person of a description specified in the regulations.
(3)In sub-paragraph (1), “connected person”, in relation to a company, means—
(a)a relevant person in relation to the company, or
(b)a company connected with the company.
(4)For the purposes of sub-paragraph (3)—
(a)“relevant person”, in relation to a company, means—
(i)a director or other officer, or shadow director, of the company;
(ii)a non-employee associate of such a person;
(iii)a non-employee associate of the company;
(b)a company is connected with another if any relevant person of one is or has been a relevant person of the other.
(5)In sub-paragraph (4), “non-employee associate” of a person means a person who is an associate of that person otherwise than by virtue of employing or being employed by that person.
(6)Subsection (10) of section 435 (extended definition of company) applies for the purposes of sub-paragraphs (3) to (5) as it applies for the purposes of that section.
(7)Regulations under this paragraph may—
(a)make different provision for different purposes;
(b)make incidental, consequential, supplemental and transitional provision.
(8)Regulations under this paragraph are to be made by statutory instrument.
(9)Regulations under this paragraph may not be made unless a draft of the statutory instrument containing the regulations has been laid before Parliament and approved by a resolution of each House of Parliament.
(10)This paragraph expires at the end of the period of 5 years beginning with the day on which it comes into force unless the power conferred by it is exercised during that period.]
Textual Amendments
F4Sch. B1 para. 60A inserted (26.5.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 129(4), 164(3)(i)(ii)
61E+W+SThe administrator of a company—
(a)may remove a director of the company, and
(b)may appoint a director of the company (whether or not to fill a vacancy).
Modifications etc. (not altering text)
C3Sch. B1 para. 61 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
62E+W+SThe administrator of a company [F5may—
(a)call a meeting of members of the company;
(b)seek a decision on any matter from the company's creditors.]
Textual Amendments
F5Words in Sch. B1 para. 62 substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 10(23); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3)
Modifications etc. (not altering text)
C4Sch. B1 para. 62 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3 (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), 5(5))
63E+W+SThe administrator of a company may apply to the court for directions in connection with his functions.
Modifications etc. (not altering text)
C5Sch. B1 para. 63 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
64(1)A company in administration or an officer of a company in administration may not exercise a management power without the consent of the administrator.E+W+S
(2)For the purpose of sub-paragraph (1)—
(a)“management power” means a power which could be exercised so as to interfere with the exercise of the administrator’s powers,
(b)it is immaterial whether the power is conferred by an enactment or an instrument, and
(c)consent may be general or specific.
Modifications etc. (not altering text)
C6Sch. B1 para. 64 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
65(1)The administrator of a company may make a distribution to a creditor of the company.
(2)Section 175 shall apply in relation to a distribution under this paragraph as it applies in relation to a winding up.
(3)A payment may not be made by way of distribution under this paragraph to a creditor of the company who is neither secured nor preferential [F6unless—
(a)the distribution is made by virtue of section 176A(2)(a), or
(b)]the court gives permission.
Textual Amendments
F6Words in Sch. B1 para. 65(3) substituted (26.5.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 128(2), 164(3)(i)(ii)
Modifications etc. (not altering text)
C7Sch. B1 para. 65 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
C8Sch. B1 para. 65(1) restricted (6.3.2008) by The Regulated Covered Bonds Regulations 2008 (S.I. 2008/346), reg. 46, Sch. para. 2(5)
C9Sch. B1 para. 65(2) applied by The Financial Market and Insolvency (Settlement Finality) Regulations 1999 (S.I. 1999/2979), reg. 14(5)(a)(i) (as substituted (1.10.2009) by The Financial Markets and Insolvency (Settlement Finality) (Amendment) Regulations 2009 (S.I. 2009/1972), reg. 4(d)(ii))
66E+W+SThe administrator of a company may make a payment otherwise than in accordance with paragraph 65 or paragraph 13 of Schedule 1 if he thinks it likely to assist achievement of the purpose of administration.
Modifications etc. (not altering text)
C10Sch. B1 para. 66 restricted (6.3.2008) by The Regulated Covered Bonds Regulations 2008 (S.I. 2008/346), reg. 46, Sch. para. 2(5)
C11Sch. B1 para. 66 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
67The administrator of a company shall on his appointment take custody or control of all the property to which he thinks the company is entitled.
Modifications etc. (not altering text)
C12Sch. B1 para. 67 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
68(1)Subject to sub-paragraph (2), the administrator of a company shall manage its affairs, business and property in accordance with—E+W+S
(a)any proposals approved under paragraph 53,
(b)any revision of those proposals which is made by him and which he does not consider substantial, and
(c)any revision of those proposals approved under paragraph 54.
(2)If the court gives directions to the administrator of a company in connection with any aspect of his management of the company’s affairs, business or property, the administrator shall comply with the directions.
(3)The court may give directions under sub-paragraph (2) only if—
(a)no proposals have been approved under paragraph 53,
(b)the directions are consistent with any proposals or revision approved under paragraph 53 or 54,
(c)the court thinks the directions are required in order to reflect a change in circumstances since the approval of proposals or a revision under paragraph 53 or 54, or
(d)the court thinks the directions are desirable because of a misunderstanding about proposals or a revision approved under paragraph 53 or 54.
Modifications etc. (not altering text)
C13Sch. B1 para. 68 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
69In exercising his functions under this Schedule the administrator of a company acts as its agent.
Modifications etc. (not altering text)
C14Sch. B1 para. 69 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
70(1)The administrator of a company may dispose of or take action relating to property which is subject to a floating charge as if it were not subject to the charge.
(2)Where property is disposed of in reliance on sub-paragraph (1) the holder of the floating charge shall have the same priority in respect of acquired property as he had in respect of the property disposed of.
(3)In sub-paragraph (2) “acquired property” means property of the company which directly or indirectly represents the property disposed of.
Modifications etc. (not altering text)
C15Sch. B1 para. 70 excluded (26.12.2003) by The Financial Collateral Arrangements (No.2) Regulations 2003 (S.I. 2003/3226), reg. 8(1)(b)
C16Sch. B1 para. 70 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
71(1)The court may by order enable the administrator of a company to dispose of property which is subject to a security (other than a floating charge) as if it were not subject to the security.
(2)An order under sub-paragraph (1) may be made only—
(a)on the application of the administrator, and
(b)where the court thinks that disposal of the property would be likely to promote the purpose of administration in respect of the company.
(3)An order under this paragraph is subject to the condition that there be applied towards discharging the sums secured by the security—
(a)the net proceeds of disposal of the property, and
(b)any additional money required to be added to the net proceeds so as to produce the amount determined by the court as the net amount which would be realised on a sale of the property at market value.
(4)If an order under this paragraph relates to more than one security, application of money under sub-paragraph (3) shall be in the order of the priorities of the securities.
(5)An administrator who makes a successful application for an order under this paragraph shall send a copy of the order to the registrar of companies before the end of the period of 14 days starting with the date of the order.
(6)An administrator commits an offence if he fails to comply with sub-paragraph (5) without reasonable excuse.
Modifications etc. (not altering text)
C17Sch. B1 para. 71 excluded (26.12.2003) by The Financial Collateral Arrangements (No.2) Regulations 2003 (S.I. 2003/3226), reg. 8(1)(b)
C18Sch. B1 para. 71 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
72(1)The court may by order enable the administrator of a company to dispose of goods which are in the possession of the company under a hire-purchase agreement as if all the rights of the owner under the agreement were vested in the company.
(2)An order under sub-paragraph (1) may be made only—
(a)on the application of the administrator, and
(b)where the court thinks that disposal of the goods would be likely to promote the purpose of administration in respect of the company.
(3)An order under this paragraph is subject to the condition that there be applied towards discharging the sums payable under the hire-purchase agreement—
(a)the net proceeds of disposal of the goods, and
(b)any additional money required to be added to the net proceeds so as to produce the amount determined by the court as the net amount which would be realised on a sale of the goods at market value.
(4)An administrator who makes a successful application for an order under this paragraph shall send a copy of the order to the registrar of companies before the end of the period of 14 days starting with the date of the order.
(5)An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (4).
Modifications etc. (not altering text)
C19Sch. B1 para. 72 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
73(1)An administrator’s statement of proposals under paragraph 49 may not include any action which—
(a)affects the right of a secured creditor of the company to enforce his security,
(b)would result in a preferential debt of the company being paid otherwise than in priority to its non-preferential debts, F7...
[F8(bb)would result in an ordinary preferential debt of the company being paid otherwise than in priority to any secondary preferential debts that it may have,]
(c)would result in one preferential creditor of the company being paid a smaller proportion of [F9an ordinary preferential debt] than another [F10, or
(d)would result in one preferential creditor of the company being paid a smaller proportion of a secondary preferential debt than another.]
(2)Sub-paragraph (1) does not apply to—
(a)action to which the relevant creditor consents,
(b)a proposal for a voluntary arrangement under Part I of this Act (although this sub-paragraph is without prejudice to section 4(3)), F11. . .
(c)a proposal for a compromise or arrangement to be sanctioned under [F12Part 26 of the Companies Act 2006 (arrangements and reconstructions)][F13 or
(d)a proposal for a cross-border merger within the meaning of regulation 2 of the Companies (Cross-Border Mergers) Regulations 2007.]
(3)The reference to a statement of proposals in sub-paragraph (1) includes a reference to a statement as revised or modified.
Textual Amendments
F7Word in Sch. B1 para. 73(1)(b) omitted (1.1.2015) by virtue of The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 10(2) (with art. 3)
F8Sch. B1 para. 73(1)(bb) inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 10(3) (with art. 3)
F9Words in Sch. B1 para. 73(1)(c) substituted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 10(4) (with art. 3)
F10Sch. B1 para. 73(1)(d) and word inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 10(5) (with art. 3)
F11Word in Sch. B1 para. 73(2)(b) repealed (15.12.2007) by The Companies (Cross-Border Mergers) Regulations 2007 (S.I. 2007/2974), reg. 65(2)
F12Words in Sch. B1 para. 73(2)(c) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 3(1), Sch. 1 para. 100(a) (with arts. 6, 11, 12)
F13Sch. B1 para. 73(2)(d) and preceding word inserted (15.12.2007) by The Companies (Cross-Border Mergers) Regulations 2007 (S.I. 2007/2974), reg. 65(3)
Modifications etc. (not altering text)
C20Sch. B1 para. 73 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
74(1)A creditor or member of a company in administration may apply to the court claiming that—
(a)the administrator is acting or has acted so as unfairly to harm the interests of the applicant (whether alone or in common with some or all other members or creditors), or
(b)the administrator proposes to act in a way which would unfairly harm the interests of the applicant (whether alone or in common with some or all other members or creditors).
(2)A creditor or member of a company in administration may apply to the court claiming that the administrator is not performing his functions as quickly or as efficiently as is reasonably practicable.
(3)The court may—
(a)grant relief;
(b)dismiss the application;
(c)adjourn the hearing conditionally or unconditionally;
(d)make an interim order;
(e)make any other order it thinks appropriate.
(4)In particular, an order under this paragraph may—
(a)regulate the administrator’s exercise of his functions;
(b)require the administrator to do or not do a specified thing;
[F14(c)require a decision of the company's creditors to be sought on a matter;]
(d)provide for the appointment of an administrator to cease to have effect;
(e)make consequential provision.
(5)An order may be made on a claim under sub-paragraph (1) whether or not the action complained of—
(a)is within the administrator’s powers under this Schedule;
(b)was taken in reliance on an order under paragraph 71 or 72.
(6)An order may not be made under this paragraph if it would impede or prevent the implementation of—
(a)a voluntary arrangement approved under Part I,
(b)a compromise or arrangement sanctioned under [F15Part 26 of the Companies Act 2006 (arrangements and reconstructions)] , F16. . .
[F17(ba)a cross-border merger within the meaning of regulation 2 of the Companies (Cross-Border Mergers) Regulations 2007, or]
(c)proposals or a revision approved under paragraph 53 or 54 more than 28 days before the day on which the application for the order under this paragraph is made.
Textual Amendments
F14Sch. B1 para. 74(4)(c) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 10(24); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3)
F15Words in Sch. B1 para. 74(6)(b) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 3(1), Sch. 1 para. 100(b) (with arts. 6, 11, 12)
F16Word in Sch. B1 para. 74(6)(b) repealed (15.12.2007) by The Companies (Cross-Border Mergers) Regulations 2007 (S.I. 2007/2974), reg. 65(4)
F17Sch. B1 para. 74(6)(ba) inserted (15.12.2007) by The Companies (Cross-Border Mergers) Regulations 2007 (S.I. 2007/2974), reg. 65(5)
Modifications etc. (not altering text)
C21Sch. B1 para. 74 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3 (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), 5(5))
75(1)The court may examine the conduct of a person who—
(a)is or purports to be the administrator of a company, or
(b)has been or has purported to be the administrator of a company.
(2)An examination under this paragraph may be held only on the application of—
(a)the official receiver,
(b)the administrator of the company,
(c)the liquidator of the company,
(d)a creditor of the company, or
(e)a contributory of the company.
(3)An application under sub-paragraph (2) must allege that the administrator—
(a)has misapplied or retained money or other property of the company,
(b)has become accountable for money or other property of the company,
(c)has breached a fiduciary or other duty in relation to the company, or
(d)has been guilty of misfeasance.
(4)On an examination under this paragraph into a person’s conduct the court may order him—
(a)to repay, restore or account for money or property;
(b)to pay interest;
(c)to contribute a sum to the company’s property by way of compensation for breach of duty or misfeasance.
(5)In sub-paragraph (3) “administrator” includes a person who purports or has purported to be a company’s administrator.
(6)An application under sub-paragraph (2) may be made in respect of an administrator who has been discharged under paragraph 98 only with the permission of the court.]
Modifications etc. (not altering text)
C22Sch. B1 para. 75 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: