Section 561 of Insolvency Act CAP 53: 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 been granted but the administration order has not yet taken effect.
(2) This section also applies from the time when a copy of notice of intention to appoint an administrator under section 523 is lodged with the Court until—
(a) the appointment of the administrator takes effect; or
(b) seven days from and including the date of lodgement without an administrator having been appointed.
(3) This section applies from the time when a copy of notice of intention to appoint an administrator is lodged with the Court under section 546(1) until— (a) the appointment of the administrator takes effect; or
(b) the period specified in section 547(2) expires without an administrator having been appointed.
(4) When this section applies, the following provisions have effect— (a) a resolution may not be passed for the liquidation of the company;
(b) the Court may not make an order for the liquidation of the company;
(c) a person may take steps to to enforce security over the company's property only with the approval of the Court;
(d) a person may take steps to repossess goods in the company's possession under a hire purchase agreement only with the approval of the Court;
(e) a landlord may exercise a right of forfeiture by peaceable re-entry in relation to premises let to the company only with the approval of the Court;
(f) a person may begin or continue legal process (including legal proceedings, execution, distress and diligence) against the company or property of the company only with the approval of the Court;
(g) a person may take steps to enforce security over the company's property only with the approval of the Court;
(h) a person may take steps to repossess goods in the company's possession under a hire purchase agreement only with the approval of the Court.
(5) In giving approval for a transaction under subsection (4), the Court may impose a condition on, or a requirement in connection with, the transaction.
(6) Subsection (4)(b) does not prevent an application from being made for the liquidation of the company under section 425 or the Court from making a liquidation order in respect of such an application.
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- 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,...
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(1) As soon as practicable after becoming administrator of a company, the administrator shall comply with subsection (2) and (3).
(2) The administrator shall—
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- 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
(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
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(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
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- 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).
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- Section 580 - General powers of administrator
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(2) A...
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(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...
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- 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.
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(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...
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- Section 589 - Power of administrator to dispose of goods that are subject to credit purchase transaction
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- Section 590 - Protection for secured and preferential creditors
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- Section 591 - Administrator's conduct of administration can be challenged
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(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...
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- Section 594 - Circumstances in which administrator's term of office can be extended
(1) Despite section 593—
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(a) on forming the belief that—
(i) the objective of the...
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- Section 601 - Discharge of administration order if administrator's appointment is terminated
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- Section 606 - Filling vacancy in office of administrator
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(b) resigns;
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- Section 608 - Power of holder of floating charge to appoint replacement administrator appointed under section 534
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(2) A replacement under this section may be made only—
(a) with...
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