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Section 615 of Insolvency Act CAP 53: Former administrator's remuneration and expenses payable of company's property and to have priority over holders of floating charges

    

(1) This section applies if a person’s appointment as the administrator of a company has ended for whatever reason.
(2) In this section—
(a) "the former administrator" means the person referred to in subsection (1); and
(b) "termination" means the time when the person's appointment as the company's administrator ended.
(3) The former administrator's remuneration and expenses is—
(a) a charge on and payable out of property over which the person had control immediately before the termination; and
(b) payable in priority to any security to which section 587 applies.
(4) An amount payable in respect of a debt or liability arising out of a contract including a contract of a loan or other credit or finance facility for the benefit of the company and necessary for the continuation of any business of the company entered into by the former administrator or a predecessor before the termination is—
(a) a charge on and payable out of property over which the former administrator had control immediately before the termination; and
(b) payable in priority to any charge arising under subsection (3).
(5) Subsection (4) applies to a liability arising under a contract of employment that was adopted by the former administrator or a predecessor before the termination; and for that purpose—
(a) action taken within fourteen days after an administrator's appointment is not to be treated as action adopting or contributing to adopting the contract;
(b) no account is to taken of a liability that arises, or in so far as it arises, by reference to anything that is done or that occurs before the adoption of the contract of employment; and (c) no account is to be taken of a liability to make a payment other than wages or salary.
(6) In subsection (5)(c), "wages or salary" includes—
(a) amounts payable in respect of periods of holiday (for which purpose the amounts are to be treated as relating to the period by reference to which the entitlement to holiday accrued);
(b) amounts payable in respect of periods of absence through illness or other good cause;
(c) amounts payable instead of a period of holidays;
(d) in relation to a particular period, amounts that would be treated as earnings by any enactment prescribed by the insolvency regulations for the purposes of this section; and (e) contributions to occupational pension schemes.

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