PART 4The Insolvency Act 1986 – specific modifications
CHAPTER 2Insolvency Act 1986 (except Schedule B1) – specific modifications
Floating charge holder not to appoint administrative receiver46
Section 72A(3)25 has effect as if—
a
before the definition of “holder of a qualifying floating charge in respect of a company’s property”, there were inserted—
“qualifying floating charge” means a charge created by an instrument that—
- a
states that paragraph 14 of Schedule B1 to the Insolvency Act 1986 applies to the floating charge,
- b
purports to empower the holder of the floating charge to appoint an administrator of the company,
- c
purports to empower the holder of the floating charge to make an appointment which would be the appointment of an administrative receiver within the meaning given by section 29(2), or
- d
purports to empower the holder of the floating charge in Scotland to appoint a receiver who on appointment would be an administrative receiver.
b
for the definition of “holder of a qualifying floating charge in respect of a company’s property” there were substituted—
“holder of a qualifying floating charge in respect of a company’s property” means a person who holds one or more debentures of the company secured—
- a
by a qualifying floating charge which relates to the whole or substantially the whole of the company’s property,
- b
by a number of qualifying floating charges which together relate to the whole or substantially the whole of the company’s property, or
- c
by charges and other forms of security which together relate to the whole or substantially the whole of the company’s property and at least one of which is a qualifying floating charge,