Section 535 of Insolvency Act CAP 53: 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.
(2) For the purposes of subsection (1), the priority of a floating charge shall be determined in accordance with the Movable Property Security Rights Act.
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- 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
(b) is appointed on an application for administration made by the company or its directors, another person may not be...
- Section 543 - Other restrictions on power of company or its directors to appoint administrator
(1) If a moratorium for a company under Division 2 of Part IX ends on a date when no voluntary arrangement is in force in respect of the company, this section applies for the twelve months from and...
- 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
If no person is entitled to notice of intention to appoint under section 545(1) so that section 547 does not apply, the statutory declaration accompanying the notice of appointment is ineffective...
- 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...
- Section 555 - Holder of qualifying floating charge may intervene in application made by person who is not the holder of such a charge
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
(1) If the holder of a qualifying floating charge in respect of a company's property could appoint an administrator under section 534 but for section 528(1)(b), that holder may nevertheless make an...
- Section 557 - Power of liquidator of company to make an application for its administration
(1) The liquidator of a company may make an application to the Court for an administration order under subsection (2).
(2) If the Court makes an administration order on the hearing of an application...
- Section 558 - Administration order in respect of company prevents making of application for liquidation order and suspends pending applications for liquidation order
(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...
- Section 562 - Company's business documents to state that company's affairs are under administration
(1) While a company is under administration, the administrator shall ensure that all business documents issued by or on behalf of the company or the administrator, and all the company's websites,...
- 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
(1) As soon as practicable after becoming administrator of a company, the administrator shall give notice requiring one or more relevant persons to provide the administrator with a statement of the...
- Section 565 - Deadline for submitting statement of affairs
(1) The deadline for submitting a statement of financial position is the end of twelve days from and including the day on which the relevant person receives notice of the requirement.
(2) The...
- Section 566 - Administrator to make statement setting out administrator's proposals for achieving the purpose of the administration
(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
(1) The administrator shall ensure that each copy of the administrator's statement of proposals sent to a creditor in accordance with section 566(4)(b) is accompanied by an invitation to an initial...
- Section 569 - When administrator is not required to convene meeting
(1) Section 568(1) does not apply if the statement of proposals states that the administrator believes—
(a) that the company has sufficient property to enable each creditor of the company to be...
- Section 570 - Business to be conducted at initial creditors' meeting and obligation of administrator to report outcome to the Court and others
(1) An initial creditors' meeting to which an administrator's proposals are presented shall consider them and may—
(a) approve them without modification; or
(b) approve them with modifications to...
- Section 571 - Administrator's proposals can be revised
(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...
- Section 572 - Consequences of failure to obtain approval of administrator's proposals
(1) This section applies if an administrator reports to the Court that—
(a) an initial creditors' meeting has failed to approve the administrator's proposals presented to
it; or
(b) a creditors'...
- Section 573 - Power of administrator to convene further creditors' meetings
(1) The administrator of a company shall convene a creditors' meeting if—
(a) in the manner prescribed by the insolvency regulations, it is requested by creditors of the company holding debts...
- Section 574 - Creditors' meeting may establish creditors' committee
(1) A creditors' meeting may establish a creditors' committee.
(2) A creditors' committee shall perform the functions conferred on it by or under this Act.
(3) A creditors' committee may require the...
- Section 575 - Creditors' meeting can be conducted by correspondence
(1) Any matter or decision that is required or permitted by or under this Part to be dealt with or made at a creditors' meeting may be dealt with or made by correspondence between the administrator...
- Section 576 - Specific functions of administrator
The administrator of a company has the functions and powers specified in the Fourth Schedule.
- Section 577 - Power of administrator to remove and appoint directors of company
The administrator of a company—
(a) may remove a director of the company from office; and
(b) may appoint a person to be director of the company (whether or not to fill a vacancy).
- Section 578 - Power of administrator to convene meetings of members and creditors of company
The administrator of a company may convene a meeting of members or creditors of the company.
- Section 579 - Power of administrator to seek directions from the Court
(1) On the application of the administrator of a company, the Court may give directions with respect to the performance and exercise of the administrator's functions and powers and the conduct of the...
- Section 580 - General powers of administrator
(1) The administrator of a company may take any action that contributes to, or is likely to contribute to, the effective and efficient management of the affairs and property of the company.
(2) A...
- Section 581 - Company under administration not to perform management functions without administrator's consent
(1) A company under administration, or an officer of a company under administration, shall not perform or exercise a management function without the consent of the administrator.
(2) For the purpose...
- Section 582 - Power of administrator to distribute company's assets to creditors
(1) The administrator of a company may make a distribution to creditors of the company.
(2) Section 471 and the Second Schedule apply in relation to a distribution under this section as they apply in...
- Section 583 - Power of administrators to make special payments in certain cases
The administrator of a company may make a payment otherwise than in accordance with section 582 or paragraph 13 of the Fourth Schedule if the administrator believes it likely to assist achievement of...
- Section 584 - Duty of administrator to assume control of property of company
Immediately on being appointed as administrator of a company, the administrator shall assume control of all the property to which the administrator believes the company is entitled.