8 Power of court to make order.E+W+S
(1)Subject to this section, if the court—
(a)is satisfied that a company is or is likely to become unable to pay its debts (within the meaning given to that expression by section 123 of this Act), and
(b)considers that the making of an order under this section would be likely to achieve one or more of the purposes mentioned below.
the court may make an administration order in relation to the company.
[F1(1A)For the purposes of a petition presented by the Financial Services Authority alone or together with any other party, an authorised deposit taker who defaults in an obligation to pay any sum due and payable in respect of a relevant deposit is deemed to be unable to pay its debts as mentioned in subsection (1).
(1B)In subsection (1A)—
(a)“authorised deposit taker" means a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, but excludes a person who has such permission only for the purpose of carrying on another regulated activity in accordance with that permission; and
(b)“relevant deposit" must be read with—
(i)section 22 of the Financial Services and Markets Act 2000,
(ii)any relevant order under that section, and
(iii)Schedule 2 to that Act,
but any restriction on the meaning of deposit which arises from the identity of the person making it is to be disregarded.]
(2)An administration order is an order directing that, during the period for which the order is in force, the affairs, business and property of the company shall be managed by a person (“the administrator") appointed for the purpose by the court.
(3)The purposes for whose achievement an administration order may be made are—
(a)the survival of the company, and the whole or any part of its undertaking, as a going concern;
(b)the approval of a voluntary arrangement under Part 1;
(c)the sanctioning under section 425 of the Companies Act of a compromise or arrangement between the company and any such persons as are mentioned in that section; and
(d)a more advantageous realisation of the company’s assets than would be effected on a winding up;
and the order shall specify the purpose or purposes for which it is made.
[F2(4)An administration order shall not be made in relation to a company after it has gone into liquidation.
(5)An administration order shall not be made against a company if—
(a)it has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance in the United Kingdom;
(b)it continues to have a liability in respect of a deposit which was held by it in accordance with the Banking Act 1979 or the Banking Act 1987.
(6)Subsection (5)(a) must be read with—
(a)section 22 of the Financial Services and Markets Act 2000;
(b)any relevant order under that section; and
(c)Schedule 2 to that Act.]
Textual Amendments
F1S. 8(1A)(1B) inserted (1.12.2001) by S.I. 2001/3649, arts. 1, 303(1)
F2S. 8(4)-(6) substituted (1.12.2001) for s. 8(4) by S.I. 2001/3649, arts. 1, 304
Modifications etc. (not altering text)
C1S. 8 applied (with modifications) (1.12.1994) by S.I. 1994/2421, art. 6(1), Sch. 2 (as amended (1.12.2001) by S.I. 2001/3649, arts. 1, 468(1))
C2S. 8(1)(a) modified (1.12.2001) by 2000 c. 8, s. 359(3); S.I. 2001/3538, art. 2(1)
C3Excluded (31.5.2002) by S.I. 2002/1242, art. 3