Section 215: Appointment of administrator

215. Appointment of administrator (1) Subject to subsection (2), a natural person may be appointed an administrator of a company. (2) A person shall not be appointed administrator where— (a) he is disqualified from being appointed as a liquidator, unless the Court orders otherwise; or (b) he is not qualified to be an Insolvency Practitioner. (3) A person shall not be appointed administrator unless he has consented in writing and has not withdrawn the consent at the time of appointment and that consent is filed with the Registrar of Companies. (4) An administrator may be appointed by— (a) the company; (b) where the company is in liquidation, the liquidator; (c) where a provisional liquidator has been appointed, the provisional liquidator; (d) a secured creditor holding a charge over the whole, or substantially the whole, of the company’s property; or (e) the Court. (5) Where a company is already in administration, an administrator may be appointed only by— (a) the Court; (b) the creditors, as a replacement administrator for an administrator that the creditors have removed; or (c) the appointer of the first administrator, if that administrator has died, resigned or become disqualified. (6) (a) A company may appoint an administrator where the directors have resolved that— (i) in the opinion of the directors voting for the resolution, the company is insolvent or is likely to become insolvent; and (ii) an administrator of the company should be appointed. (b) The appointment shall be in writing. (c) The company shall not appoint an administrator if it is already in liquidation. (7) (a) The liquidator or provisional liquidator of a company may appoint an administrator if he thinks that the company is insolvent or is likely to become insolvent. (b) The appointment shall be in writing and shall state the date of the appointment. I14 – 127 [Issue 3] Insolvency Act (c) The liquidator or provisional liquidator may appoint himself administrator if he first obtains— (i) the permission of the Court; or (ii) in the case of a liquidator but not a provisional liquidator, the approval of the company’s creditors in the form of a resolution passed at a meeting of the creditors. (d) A liquidator or provisional liquidator shall not appoint as administrator a person who is the liquidator’s or provisional liquidator’s business or professional partner, employer or employee, unless the appointment has been approved by the company’s creditors in the form of a resolution passed at a creditors’ meeting. (8) (a) A person who holds a charge over the whole, or substantially the whole, of a company’s property or the receiver appointed by that person, may appoint an administrator where the charge has become, and is still, enforceable. (b) The appointment shall be in writing. (c) The secured creditor or receiver shall not appoint an administrator where the company is already in liquidation. (9) The Court may appoint an administrator on the application of a creditor, the liquidator (if the company is in liquidation), the Director or the Registrar of Companies where it is satisfied that— (a) the company is or may become insolvent; (b) the survival of the company and the assets as a going concern are reasonably capable of being achieved in the event of an administrator being appointed; (c) a more advantageous realisation of the assets of the company and any related company may be achieved than on an immediate winding up; (d) the appointment of an administrator may achieve a (if the company is in liquidation), the Director or the Registrar of Companies where it is satisfied that— (a) the company is or may become insolvent; (b) the survival of the company and the assets as a going concern are reasonably capable of being achieved in the event of an administrator being appointed; (c) a more advantageous realisation of the assets of the company and any related company may be achieved than on an immediate winding up; (d) the appointment of an administrator may achieve a more advantageous realisation or a more expeditious settlement of a duty or liability owed by any person to the company or any related company; or (e) it is just and equitable to do so. (10) An administrator who is appointed to a company already in liquidation may apply to the Court for an order under section 169 for the liquidation to resume. (11) The appointment of an administrator may not be revoked, except where he is removed by the Court or by the creditors.