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Insolvency

Carrying out the administration

The administrator has a number of tasks:

 He is the company’s agent, but must act in the best interests of all the
company’s creditors.

 He takes on the powers previously given to the directors. Therefore he may
manage the business and property of the company, and has the power to bring
and defend legal proceedings, sell assets and borrow money.

 He has the power to remove and replace directors and employees.

 He must file notice of his appointment within 7 days

 He must draw up a statement of his proposals within eight weeks of his
appointment.

 The proposals must be approved at a meeting of creditors held within ten
weeks of his appointment.

 If the meeting does not approve the proposals, the court may dismiss the
administrator or make such provisions as it sees fit.

 If the meeting approves the proposals, the administrator can carry them out.

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