Section 568 of Insolvency Act CAP 53: Requirement to convene initial creditors' meeting
(1) The administrator shall ensure that each copy of the administrator's statement of proposals sent to a creditor in accordance with section 566(4)(b) is accompanied by an invitation to an initial creditors' meeting to be held—
(a) as soon as is reasonably practicable after the company enters administration; and
(b) in any case, within seventy days from and including the date on which the company enters administration.
(2) The administrator shall present a copy to the administrator's statement of proposals to the initial creditors' meeting.
(3) The period specified in subsection (1)(b) can be varied in accordance with section 622.
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- Section 569 - When administrator is not required to convene meeting
(1) Section 568(1) does not apply if the statement of proposals states that the administrator believes—
(a) that the company has sufficient property to enable each creditor of the company to be...
- Section 570 - Business to be conducted at initial creditors' meeting and obligation of administrator to report outcome to the Court and others
(1) An initial creditors' meeting to which an administrator's proposals are presented shall consider them and may—
(a) approve them without modification; or
(b) approve them with modifications to...
- Section 571 - Administrator's proposals can be revised
(1) This section applies if—
(a) an administrator's proposals have been approved (with or without modification) at an initial creditors' meeting;
(b) the administrator proposes a revision to the...
- Section 572 - Consequences of failure to obtain approval of administrator's proposals
(1) This section applies if an administrator reports to the Court that—
(a) an initial creditors' meeting has failed to approve the administrator's proposals presented to
it; or
(b) a creditors'...
- Section 573 - Power of administrator to convene further creditors' meetings
(1) The administrator of a company shall convene a creditors' meeting if—
(a) in the manner prescribed by the insolvency regulations, it is requested by creditors of the company holding debts...
- Section 574 - Creditors' meeting may establish creditors' committee
(1) A creditors' meeting may establish a creditors' committee.
(2) A creditors' committee shall perform the functions conferred on it by or under this Act.
(3) A creditors' committee may require the...
- Section 575 - Creditors' meeting can be conducted by correspondence
(1) Any matter or decision that is required or permitted by or under this Part to be dealt with or made at a creditors' meeting may be dealt with or made by correspondence between the administrator...
- Section 576 - Specific functions of administrator
The administrator of a company has the functions and powers specified in the Fourth Schedule.
- Section 577 - Power of administrator to remove and appoint directors of company
The administrator of a company—
(a) may remove a director of the company from office; and
(b) may appoint a person to be director of the company (whether or not to fill a vacancy).
- Section 578 - Power of administrator to convene meetings of members and creditors of company
The administrator of a company may convene a meeting of members or creditors of the company.
- Section 579 - Power of administrator to seek directions from the Court
(1) On the application of the administrator of a company, the Court may give directions with respect to the performance and exercise of the administrator's functions and powers and the conduct of the...
- Section 580 - General powers of administrator
(1) The administrator of a company may take any action that contributes to, or is likely to contribute to, the effective and efficient management of the affairs and property of the company.
(2) A...
- Section 581 - Company under administration not to perform management functions without administrator's consent
(1) A company under administration, or an officer of a company under administration, shall not perform or exercise a management function without the consent of the administrator.
(2) For the purpose...
- Section 582 - Power of administrator to distribute company's assets to creditors
(1) The administrator of a company may make a distribution to creditors of the company.
(2) Section 471 and the Second Schedule apply in relation to a distribution under this section as they apply in...
- Section 583 - Power of administrators to make special payments in certain cases
The administrator of a company may make a payment otherwise than in accordance with section 582 or paragraph 13 of the Fourth Schedule if the administrator believes it likely to assist achievement of...
- Section 584 - Duty of administrator to assume control of property of company
Immediately on being appointed as administrator of a company, the administrator shall assume control of all the property to which the administrator believes the company is entitled.
- Section 585 - Duty of administrator to manage affairs and property of company
(1) Subject to subsection (2), the administrator of a company shall manage its affairs and property in accordance with—
(a) any proposals approved under section 570;
(b) any revision of those...
- Section 586 - Administrator is agent of company
In performing and exercising the administrator's functions and powers under this Part, the administrator of a company acts as its agent.
- Section 587 - Power of administrator to dispose of, and deal with, charged property: floating charge
(1) The administrator of a company may dispose of, or take action relating to, property that is subject to a floating charge as if it were not subject to the charge.
(2) If property is disposed of in...
- Section 588 - Power of administrator to dispose of, and deal with, charged property: non-floating charge
(1) On the application of the administrator of a company, the Court may make an order enabling the administrator to dispose of property that is subject to a security as if it were not subject to the...
- Section 589 - Power of administrator to dispose of goods that are subject to credit purchase transaction
(1) The Court may make an order authorising the administrator of a company to dispose of goods that are in the possession of the company under a credit purchase transaction as if all the rights of the...
- Section 590 - Protection for secured and preferential creditors
(1) An administrator's statement of proposals under section 566 may not include action that— (a) affects the right of a secured creditor of the company to enforce the creditor's security;
(b) would...
- Section 591 - Administrator's conduct of administration can be challenged
(1) A creditor or member of a company under administration may apply to the Court claiming—
(a) that the administrator is acting or has acted so as to detrimentally affect the interests of the...
- Section 592 - Power of the Court to examine conduct of administrator's administration of the company
(1) The Court may examine the conduct of a person who—
(a) is or purports to be the administrator of a company; or
(b) has been, or has purported to be, the administrator of a company.
(2) An...
- Section 593 - Automatic end of administration
The appointment of an administrator automatically ends at the end of twelve months from and including the date on which it took effect.
- Section 594 - Circumstances in which administrator's term of office can be extended
(1) Despite section 593—
(a) on the application of an administrator, the Court may by order extend the administrator's term of office for a specified period; and
(b) an administrator's term of...
- Section 595 - Court may terminate administration on application of administrator
(1) The administrator of a company shall make an application to the Court for an order terminating the administrator's appointment—
(a) on forming the belief that—
(i) the objective of the...
- Section 596 - Termination of administration when objective achieved
(1) This section applies to an administrator of a company who is appointed under section 534 or 541.
(2) If the administrator believes that the purpose of administration has been sufficiently...
- Section 597 - Court may terminate administrator's appointment on application of creditor
(1) A creditor of a company that is under administration may make an application to the Court for an order terminating the appointment of an administrator of the company.
(2) An application under...
- Section 598 - Court to terminate administrator's appointment on making of public interest liquidation order
(1) If a liquidation order is made for the liquidation of a company under administration on an application made under section 425, the Court shall make an order—
(a) terminating the appointment of...
- Section 599 - Procedure for moving from administration to creditors' voluntary liquidation
(1) This section applies if the administrator of a company believes—
(a) that the total amount that each secured creditor of the company is likely to receive has been paid to the creditor or set...
- Section 600 - Moving from administration to dissolution
(1) On forming the belief that a company that is under administration has no property that might allow a distribution to its creditors, the administrator shall lodge with the Registrar a notice to...
- Section 601 - Discharge of administration order if administrator's appointment is terminated
The Court shall discharge an administration order if—
(a) it has made an order under this Part terminating an administrator's appointment; and (b) the administrator was appointed by the Court.
- Section 602 - Administrator to lodge copy of order of the Court terminating appointment with Registrar of Companies
(1) Within fourteen days after the Court has made an order under this Part terminating the appointment of an administrator, the administrator shall lodge a copy of the order with the Registrar for...
- Section 603 - Resignation of administrator
(1) An administrator may resign only in the circumstances prescribed by the insolvency regulations for the purposes of this section.
(2) If a circumstance has arisen that permits an administrator to...
- Section 604 - Court may remove administrator from office
The Court may, by order, remove an administrator from office if satisfied that circumstances exist that make it inappropriate for the administrator to continue in office.
- Section 605 - Administrator to vacate office on ceasing to be qualified
(1) An administrator of a company vacates office if the administrator ceases to be an authorised insolvency practitioner.
(2) If an administrator vacates office because of subsection (1), the...
- Section 606 - Filling vacancy in office of administrator
Sections 607 to 611 apply to an administrator who—
(a) dies;
(b) resigns;
(c) is removed from office under section 604; or (d) vacates office under section 605.
- Section 607 - Power of the Court to replace administrator
(1) Any of the following may make an application under subsection (2) for the replacement of an administrator appointed by the Court— (a) a creditors' committee of the company;
(b) the...
- Section 608 - Power of holder of floating charge to appoint replacement administrator appointed under section 534
If the administrator was appointed under section 534, the holder of the floating charge under which the appointment was made may replace the administrator.
- Section 609 - Power of company to appoint replacement administrator appointed under section 541(1)
(1) If the administrator of a company was appointed under section 541(1), the company may replace the administrator.
(2) A replacement under this section may be made only—
(a) with the consent of...
- Section 610 - Power of directors of company to appoint replacement administrator appointed under section 541(2)
(1) If the administrator of a company was appointed under section 541(2), the directors of the company may replace the administrator.
(2) A replacement under this section may be made only—
(a) with...
- Section 611 - Power of the Court to replace administrator in certain other circumstances
(1) The Court may make an order replacing an administrator on the application of a person by whom an application is made under section 607(1) if the Court—
(a) is satisfied that a relevant person is...
- Section 612 - Court may replace administrator when there is a competing floating charge-holder
(1) If an administrator of a company is appointed under section 534 by the holder of a qualifying floating charge in respect of the company's property, the holder of a prior qualifying floating charge...
- Section 613 - Creditors' meeting may replace administrator appointed by company or directors
(1) A creditors' meeting may replace an administrator of a company if—
(a) the administrator has been appointed by the company or its directors under section 541; and (b) there is no holder of a...
- Section 614 - Discharge from liability on administrator's vacating office
(1) If the appointment of a person as the administrator of a company ends (for whatever reason), the administrator is discharged from liability in respect of all acts done or omitted to be done as...
- Section 615 - Former administrator's remuneration and expenses payable of company's property and to have priority over holders of floating charges
(1) This section applies if a person’s appointment as the administrator of a company has ended for whatever reason.
(2) In this section—
(a) "the former administrator" means the person referred to...
- Section 616 - Joint and concurrent administrators
(1) In this Part—
(a) a reference to the appointment of an administrator of a company includes a reference to the appointment of a number of persons to act jointly or concurrently as the...
- Section 617 - Offences committed by joint administrators
(1) If two or more persons are appointed to act as joint administrators of a company, a reference to the administrator of the company in this Part is to those persons acting jointly.
(2) However, a...
- Section 618 - Administrators acting concurrently
If two or more persons are appointed to act concurrently as the administrator of a company, a reference to the administrator of a company in this Part is to any of the persons appointed or to any...