Creditors’ decision procedure in administrative receiverships
Produced in partnership with Marcus Haywood of South Square Chambers
Practice notesCreditors’ decision procedure in administrative receiverships
Produced in partnership with Marcus Haywood of South Square Chambers
Practice notes
The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 provide a scheme for decision-making in all insolvency procedures. The detailed provisions for decision-making are set out in IR 2016, SI 2016/1024, Pt 15.
Since the reforms introduced by the Enterprise Act 2002, the scope of Administrative Receivership has been much diminished. Such a receiver can no longer be appointed under a Qualifying floating charge as defined by Schedule B1 to the Insolvency Act 1986 (IA 1986), created on or after 15 September 2003, except in a very limited set of circumstances which are of limited general practical importance. To all intents and purposes, a debenture holder will now invariably appoint an administrator.
Relationship between the administrative receiver and creditors
IA 1986, s 47(3) imposes an obligation on the following persons to make out and submit a statement of affairs to an administrative receiver:
- •
those who are or have been officers of the company
- •
those who have taken part in the company’s formation at any time within one year before the date
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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Administrative Receivership definition
What does Administrative Receivership mean?
When a company breaches the terms of its borrowing from a creditor with a qualifying floating charge, or in other circumstances set out in the charge, in limited circumstances that creditor may appoint an administrative receiver to recover the money it is owed.
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