Chapter 1 Chapter 1 — Nature of Administration
1. Administration
(1) For the purposes of these Regulations, "administrator" of a Company means a person appointed under this Part 1 (Administration) to manage the Company's affairs, business and property and "administrator" of a Deed of Company Arrangement means a person appointed under this Part 1 (Administration) to act as the administrator of a Deed of Company Arrangement.(2) For the purposes of this Part 1 (Administration) —(a) a Company is "in administration" while the appointment of an administrator of the Company has effect;(b) a Company "enters administration" when the appointment of an administrator of the Company takes effect;(c) a Company ceases to be in administration when the appointment of an administrator of the Company ceases to have effect in accordance with this Part 1 (Administration); and(d) a Company does not cease to be in administration merely because an administrator of the Company vacates office (by reason of resignation, death or otherwise) or is removed from office.(3) A person may be appointed as administrator of a Company —(a) by administration order of the Court under Section 6 (Administration order);(b) by the holder of a qualifying charge under Section 21 (Power to appoint); or(c) by the Company or its Directors under Section 29 (Power to appoint).2. Purpose of administration
(1) The administrator of a Company must perform his functions with the objective of —(a) rescuing the Company as a going concern;(b) achieving a better result for the Company's creditors as a whole than would be likely if the Company were wound up (without first being in administration); or(c) realising property in order to make a distribution to one or more secured or preferential creditors.(2) Subject to subsection (4), the administrator of a Company must perform his functions in the interests of the Company's creditors as a whole.(3) The administrator of a Company must perform his functions with the objective specified in subsection (1)(a) unless he thinks either —(a) that it is not reasonably practicable to achieve that objective; or(b) that the objective specified in subsection (1)(b) would achieve a better result for the Company's creditors as a whole.(4) The administrator of a Company may perform his functions with the objective specified in subsection (1)(c) only if —(a) he thinks that it is not reasonably practicable to achieve either of the objectives specified in subsection (1)(a) and (b); and(b) he does not unnecessarily harm the interests of the creditors of the Company as a whole.3. Administrator
The administrator of a company must perform his functions as quickly and efficiently as is reasonably practicable.
4. Status of administrators
An administrator of a Company and an administrator of a Deed of Company Arrangement is an officer of the Court (whether or not he is appointed by the Court).
5. General restrictions
(1) A person may be appointed as administrator of a Company or an administrator of a Deed of Company Arrangement only if he is licensed as an insolvency practitioner under the Commercial Licensing Regulations 2015.(2) A person may not be appointed as administrator of a Company which is in administration (subject to the provisions of Chapter 11 (Replacing Administrator) of Part 1 (Administration) about replacement and additional administrators).(3) A person may not be appointed as administrator of a Company which is in liquidation by virtue of —(a) a resolution for voluntary winding-up; or(b) a winding-up order.(4) Subsection (3)(a) is subject to Section 39(4) and (5) (Application where Company in liquidation).(5) Subsection (3)(b) is subject to Section 39 (Application where Company in liquidation).