How an administration comes to an end

Published by a ½Û×ÓÊÓÆµ Restructuring & Insolvency expert
Practice notes

How an administration comes to an end

Published by a ½Û×ÓÊÓÆµ Restructuring & Insolvency expert

Practice notes
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There are several ways in which an administration can come to an end depending on the specific circumstances of the administration.

The starting point is that an administration should not last longer than 12 months—the administration will come to an automatic end at the end of 12 months unless another exit route is taken. Following expiry of the administration term the former administrators have no standing to exercise any of the powers conferred on administrators under IA 1986. Actions taken by former administrators under the impression that their appointment is continuing may leave the administrators open to potential personal liability for trespass to or inference with the company's property and breach of duty/misfeasance proceedings.

If longer is required, an extension must be sought with justifiable reasons such as the need to pursue litigation for the estate for example—see Practice Note: How can an administrator apply to extend the period of automatic termination of administration?

Otherwise, the company will move back to the control of the directors, could be dissolved, or be moved into another

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United Kingdom
Key definition:
Part 26A restructuring plan definition
What does Part 26A restructuring plan mean?

Or restructuring plan; a restructuring plan proposed under Part 26A of the Comapnies Act 2006, created by CIGA 2000 similar in many ways to schemes but subject to CCCD and having no numerosity requirement. For a class to vote in favour, 75% of a class by value must agree to the plan.

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