142. Vacation of office: discharge from liability
Past version: effective from 14/06/2015 - 13/06/2015
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(1) Where a person ceases to be the administrator of a Company or of a Deed of Company Arrangement (whether because he vacates office by reason of resignation, death or otherwise, because he is removed from office or because his appointment ceases to have effect) he is discharged from liability in respect of any action of his as administrator.
(2) The discharge provided by subsection (1) takes effect —
(a) in the case of an administrator who dies, on the filing with the Court of notice of his death;
(b) in the case of an administrator of a Company appointed under Section 21 (Power to appoint) or Section 29 (Power to appoint), at a time appointed by resolution of the creditors' committee or, if there is no committee, by resolution of the creditors; or
(c) in any case, at a time specified by the Court.
(3) For the purpose of the application of subsection (2)(b) in a case where the administrator of a Company has made a statement under Section 61(6)(b) (Requirement for initial creditors' meeting), a resolution shall be taken as passed if (and only if) passed with the approval of —
(a) each secured creditor of the Company; or
(b) if the administrator of the Company has made a distribution to preferential creditors or thinks that a distribution may be made to preferential creditors —
(i) each secured creditor of the Company; and
(ii) preferential creditors whose debts amount to more than 50% of the preferential debts of the Company, disregarding debts of any creditor who does not respond to an invitation to give or withhold approval.
(4) Discharge —
(a) applies to liability accrued before the discharge takes effect; and
(b) does not prevent the exercise of the Court's powers under Section 106 (Misfeasance).