Section 522 of Insolvency Act CAP 53: The objectives of administration
(1) The objectives of the administration of a company are the following—
(a) to maintain the company as a going concern;
(b) to achieve a better outcome for the company's creditors as a whole than would likely to be the case if the company were liquidated (without first being under administration);
(c) to realise the property of the company in order to make a distribution to one or more secured or preferential creditors.
(2) Subject to subsection (4), the administrator of a company shall perform the administrator's functions in the interests of the company's creditors as a whole.
(3) The administrator shall perform the administrator's functions with the objective specified in subsection (1)(a) unless the administrator believes either—
(a) that it is not reasonably practicable to achieve that objective; or
(b) that the objective specified in subsection (1)(b) would achieve a better result for the company's creditors as a whole.
(4) The administrator may perform the administrator's functions with the objective specified in subsection (1)(c) only if—
(a) the administrator believes that it is not reasonably practicable to achieve either of the objectives specified in subsection (1)(a) and (b); and
(b) the administrator does not unnecessarily harm the interests of the creditors of the company as a whole.
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- Section 523 - Who can appoint an administrator?
A person may be appointed as administrator of a company—
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(b) by the holder of a floating charge under section 534; or (c) by...
- Section 524 - Duty of administrator
The administrator of a company shall perform the administrator's functions as quickly and efficiently as is reasonably practicable.
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- Section 526 - Qualification for appointment of administrators
A person may be appointed as administrator of a company only if the person is an authorised insolvency practitioner.
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(2) Subsection (1) is subject to sections 606 to 613 and...
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(2) Subsection (1)(a) is...
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(1) A person may not be appointed under this Part as administrator of—
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(b) a company that enters into contracts of insurance or carries on insurance...
- Section 530 - What is an administration order?
An administration order is an order appointing a person as the administrator of a company and providing for the administration of the company by that person.
- Section 531 - Conditions for making administration orders
The Court may make an administration order in relation to a company only if satisfied—
(a) that the company is or is likely to become unable to pay its debts; and
(b) that the administration order...
- Section 532 - Who may make an application to the Court to for an administration order in respect of company
(1) An application to the Court for an administration order in respect of a company may be made only by the following persons—
(a) the company;
(b) the directors of the company;
(c) one or more...
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(1) On hearing an application for an administration order in respect of a company, the Court may—
(a) make the administration order sought;
(b) dismiss the application;
(c) adjourn the hearing...
- Section 534 - Holder of floating charge may appoint administrator
(1) The holder of a qualifying floating charge in respect of a company's property may appoint an administrator of the company.
(2) For the purposes of subsection (1), a floating charge is a...
- Section 535 - Restrictions on the power of holder of floating charge to appoint administrator
(1) A person may not appoint an administrator under section 534 unless the person has given at least three days' notice to the holder of any prior floating charge that satisfies subsection (2) of that...
- Section 536 - Administrator not to be appointed if relevant floating charge is not enforceable
A person may not be appointed as administrator under section 534 if the floating charge on which the appointment depends is unenforceable.
- Section 537 - Holder of relevant floating charge to notify the Court on appointing administrator
(1) A person who appoints an administrator of a company under section 534 shall lodge with the Court
—
(a) a notice of appointment that complies with subsections (2); and
(b) such other documents...
- Section 538 - When administrator's appointment takes effect
The appointment of an administrator under section 534 takes effect when the requirements of section 537 are satisfied.
- Section 539 - Duty of holder of relevant floating charge to notify appointment to administrator and other persons
(1) As soon as is reasonably practicable after the requirements of section 537 are satisfied, the person who appointed the administrator under section 534 shall notify the administrator, and such...
- Section 540 - Power of the Court to order person invalidly appointed to be indemnified against liability
(1) If—
(a) a person purports to appoint an administrator under section 534; and
(b) the appointment is discovered to be invalid, any person who appears to the Court to have a legitimate interest in...
- Section 541 - Administrator may be appointed by company or by its directors
(1) A company may appoint an administrator.
(2) The directors of a company may appoint an administrator.
- Section 542 - Restrictions on power of company or its directors to appoint administrator
lf an administrator of a company— (a) is appointed under section 541; or
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- Section 544 - Circumstances in which company or its directors may not appoint administrator
An administrator of a company may not be appointed under section 541 if—
(a) an application for the liquidation of the company has been presented and is not yet disposed of;
(b) an application for...
- Section 545 - Notice to be given of intention to appoint administrator
(1) A person who proposes to make an appointment under section 541 shall give to any person who is or may be entitled to appoint an administrator of the company under section 534 a notice that...
- Section 546 - Person giving notice of intention to appoint administrator to lodge certain documents with the Court
(1) As soon as practicable after a person has given notice of an intention to make an appointment under section 545, the person shall lodge with the Court—
(a) a copy of the notice and of any...
- Section 547 - Further restrictions on making appointments under section 541
(1) An appointment may not be made under section 541 unless the person who makes the appointment has complied with the requirements of section 545 and 546 and— (a) the period of notice specified in...
- Section 548 - Person appointing administrator under section 541 to lodge certain documents with the Court
(1) A person who appoints an administrator of a company under section 541 shall lodge with the Court
—
(a) a notice of appointment that identifies the administrator;
(b) a statement by the...
- Section 549 - What happens if no one is entitled to notice of intention to appoint administrator
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- Section 550 - When appointment of administrator under this Division takes effect
The appointment of an administrator under section 541 takes effect when the requirements of section 548 are satisfied.
- Section 551 - Person making appointment to notify appointment to administrator and others
(1) As soon as is reasonably practicable after the requirements of section 548 are satisfied, the person who has appointed the administrator under section 541 shall notify the administrator, and such...
- Section 552 - Appointment under section 541 not to take effect in certain cases
If, before the requirements of section 548 are satisfied, the company enters administration under an administration order, or because of an appointment under section 534—
(a) the appointment under...
- Section 553 - Power of the Court to order person invalidly appointed to be indemnified against liability
(1) If—
(a) a person purports to appoint an administrator under section 541; and
(b) the appointment is discovered to be invalid, any person who appears to the Court to have a legitimate interest in...
- Section 554 - Power of the Court to make administration order in respect of company on application made by holder of qualifying floating charge even if company may be able to pay its debts
(1) If an application for administration in respect of a company—
(a) is made by the holder of a qualifying floating charge in respect of the company's property; and
(b) includes a statement that...
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If—
(a) an application for administration in respect of a company is made by a person who is not the holder of a qualifying floating charge in respect of the company's property; and
(b) the holder...
- Section 556 - Other circumstance in which holder of qualifying floating charge may make application for administration order
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(2) If the Court makes an administration order on the hearing of an application...
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(1) On the making of an administration order in respect of a company—
(a) an application for the liquidation of the company may not be made; and
(b) any application for the liquidation of the...
- Section 559 - Moratorium on insolvency proceedings while administration order has effect
(1) While a company is under administration—
(a) a resolution for the liquidation of the company may not be made; and (b) the Court may not make an order for the liquidation of the...
- Section 560 - Moratorium on other legal process while administration order has effect
(1) While a company is under administration—
(a) a person may take steps to enforce a security over the company's property only with the consent of the administrator or with the approval of the...
- Section 560A - Considerations to take into account on applications for approval to lift moratorium
(1) When considering whether to grant its approval under section 560, the court or the administrator may in particular take into consideration where appropriate—
(a) the statutory purpose of the...
- Section 561 - Interim moratorium when application for administration order has been made
(1) This section applies if an application for administration in respect of a company has been made and
—
(a) the application has not yet been granted or dismissed; or
(b) the application has...
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- Section 563 - Announcement of administrator's appointment
(1) As soon as practicable after becoming administrator of a company, the administrator shall comply with subsection (2) and (3).
(2) The administrator shall—
(a) send a notice of the...
- Section 564 - Relevant persons to provide administrator with statement of company's affairs
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- Section 565 - Deadline for submitting statement of affairs
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(2) The...
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(1) The administrator of a company shall make a statement setting out proposals for achieving the purpose of administration.
(2) The administrator shall ensure that the proposals—
(a) deal with such...
- Section 567 - Conduct of creditors' meetings
The person presiding at a creditors' meeting shall ensure that it is conducted in the manner prescribed by the insolvency regulations.
- Section 568 - Requirement to convene initial creditors' meeting
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- Section 569 - When administrator is not required to convene meeting
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(a) that the company has sufficient property to enable each creditor of the company to be...
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(a) approve them without modification; or
(b) approve them with modifications to...
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(1) This section applies if—
(a) an administrator's proposals have been approved (with or without modification) at an initial creditors' meeting;
(b) the administrator proposes a revision to the...