Corporate insolvency processes

Administration

Administration is a procedure designed to give an entity breathing space with a view to either a rescue or a restructure, or to allow for a better outcome for all creditors than a liquidation.

The modern administration regime is to be found in Schedule B1 to the Insolvency Act 1986 (IA 1986), and was introduced on 15 September 2003 by the Enterprise Act 2002 (EnA 2002). An administrator can be appointed over a company, a partnership or a limited partnership. This Overview (and related materials) only cover company administrations.

An administrator is an insolvency practitioner who is appointed under IA 1986 to manage the company’s business and property to achieve one of the three purposes of administration set out under IA 1986. It is also possible for administrators to take a ‘light touch’ approach whereby the administrators widen the authority of the directors to continue to run the company during the administration, while