Section 556 of Insolvency Act CAP 53: 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 application to the Court for an administration order under subsection (2).
(2) If the Court makes an administration order on hearing an application made under subsection (1), the Court—
(a) shall discharge the liquidation order;
(b) shall make provision for such matters as may be prescribed by the insolvency regulations for the purposes of this section;
(c) may make such other provision of a consequential nature as it considers appropriate; and
(d) shall specify which of the powers under this Part are to be exercisable by the administrator.
(3) If the Court specifies the powers under this Part that are to be exercisable by the administrator, this Part has, in relation to the exercise of those powers, effect with such modifications as the Court may specify.
Enhance Your Research with Bookmarks and Annotations
Here's how you can use these features:
- To bookmark this page, click the "Bookmark this Page" button below the document title.
- To add an annotation, highlight text in the document and select "Add Annotation" from the toolbar that appears.
- These features are great for organizing your research and keeping track of key information.
- You can view and manage your bookmarks and annotations on your Bookmarks and Annotations page.
- 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.
- Section 585 - Duty of administrator to manage affairs and property of company
(1) Subject to subsection (2), the administrator of a company shall manage its affairs and property in accordance with—
(a) any proposals approved under section 570;
(b) any revision of those...
- Section 586 - Administrator is agent of company
In performing and exercising the administrator's functions and powers under this Part, the administrator of a company acts as its agent.
- Section 587 - Power of administrator to dispose of, and deal with, charged property: floating charge
(1) The administrator of a company may dispose of, or take action relating to, property that is subject to a floating charge as if it were not subject to the charge.
(2) If property is disposed of in...
- Section 588 - Power of administrator to dispose of, and deal with, charged property: non-floating charge
(1) On the application of the administrator of a company, the Court may make an order enabling the administrator to dispose of property that is subject to a security as if it were not subject to the...
- Section 589 - Power of administrator to dispose of goods that are subject to credit purchase transaction
(1) The Court may make an order authorising the administrator of a company to dispose of goods that are in the possession of the company under a credit purchase transaction as if all the rights of the...
- Section 590 - Protection for secured and preferential creditors
(1) An administrator's statement of proposals under section 566 may not include action that— (a) affects the right of a secured creditor of the company to enforce the creditor's security;
(b) would...
- Section 591 - Administrator's conduct of administration can be challenged
(1) A creditor or member of a company under administration may apply to the Court claiming—
(a) that the administrator is acting or has acted so as to detrimentally affect the interests of the...
- Section 592 - Power of the Court to examine conduct of administrator's administration of the company
(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...
- Section 593 - Automatic end of administration
The appointment of an administrator automatically ends at the end of twelve months from and including the date on which it took effect.
- Section 594 - Circumstances in which administrator's term of office can be extended
(1) Despite section 593—
(a) on the application of an administrator, the Court may by order extend the administrator's term of office for a specified period; and
(b) an administrator's term of...
- Section 595 - Court may terminate administration on application of administrator
(1) The administrator of a company shall make an application to the Court for an order terminating the administrator's appointment—
(a) on forming the belief that—
(i) the objective of the...
- Section 596 - Termination of administration when objective achieved
(1) This section applies to an administrator of a company who is appointed under section 534 or 541.
(2) If the administrator believes that the purpose of administration has been sufficiently...
- Section 597 - Court may terminate administrator's appointment on application of creditor
(1) A creditor of a company that is under administration may make an application to the Court for an order terminating the appointment of an administrator of the company.
(2) An application under...
- Section 598 - Court to terminate administrator's appointment on making of public interest liquidation order
(1) If a liquidation order is made for the liquidation of a company under administration on an application made under section 425, the Court shall make an order—
(a) terminating the appointment of...
- Section 599 - Procedure for moving from administration to creditors' voluntary liquidation
(1) This section applies if the administrator of a company believes—
(a) that the total amount that each secured creditor of the company is likely to receive has been paid to the creditor or set...
- Section 600 - Moving from administration to dissolution
(1) On forming the belief that a company that is under administration has no property that might allow a distribution to its creditors, the administrator shall lodge with the Registrar a notice to...
- Section 601 - Discharge of administration order if administrator's appointment is terminated
The Court shall discharge an administration order if—
(a) it has made an order under this Part terminating an administrator's appointment; and (b) the administrator was appointed by the Court.
- Section 602 - Administrator to lodge copy of order of the Court terminating appointment with Registrar of Companies
(1) Within fourteen days after the Court has made an order under this Part terminating the appointment of an administrator, the administrator shall lodge a copy of the order with the Registrar for...
- Section 603 - Resignation of administrator
(1) An administrator may resign only in the circumstances prescribed by the insolvency regulations for the purposes of this section.
(2) If a circumstance has arisen that permits an administrator to...
- Section 604 - Court may remove administrator from office
The Court may, by order, remove an administrator from office if satisfied that circumstances exist that make it inappropriate for the administrator to continue in office.
- Section 605 - Administrator to vacate office on ceasing to be qualified
(1) An administrator of a company vacates office if the administrator ceases to be an authorised insolvency practitioner.
(2) If an administrator vacates office because of subsection (1), the...