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Business > Administration

The main purpose of administration is to try to save a company and enable it to continue as a going concern.  If that is not possible then administration may be used to try to achieve a better outcome for creditors than on a winding up. 

Administration

An administrator may be appointed by the directors of the company, a secured creditor or by the court. Once the administrator is appointed, no claims can be brought against the company by creditors. The objectives of the administration will be set out in the administrator’s report to creditors.  The administrator is obliged to call a meeting unless the intention is to move the company to dissolution. The administrator is an agent of the company and has wide powers to run the company or sell its assets to a purchaser.

Pre-pack administration

A pre-pack administration arises where an agreement is reached for the sale of the company before the administrator is appointed.  In many cases, the purchaser will be the directors of the company. This can be controversial because it allows directors to throw off the debts of the company but to carry on trading the same business.   There are various requirements that have to be fulfilled and the insolvency practitioner must follow procedures to ensure that the creditors are informed of what has happened and are able to raise complaints if they want to.  The government is contemplating introducing new legislation to regulate pre-pack administrations. 

A number of legal considerations arise in connection with administrations and when purchasing a business from an administrator including responsibility for taking on the staff of the business and we can advise creditors and prospective purchasers in this respect.

Our solicitors can advise your company on all aspects of the adminstration process.

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Lawbridge Grant Saw
Roxby House
20-22 Station Road
Sidcup
Kent DA15 7EJ. 

Email UsTel : 020 8308 3610
Fax : 020 8338 3070

 

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