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administration


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N.

1 The period in which the affairs, business, and property of a company is managed by a qualified insolvency practitioner known as an administrator. The provision is contained in Schedule B1 of the Insolvency Act 1986. The administrator can be appointed either by the court under an administration order or by the company, its directors, or a qualifying floating charge holder. The administrator must perform his functions in the interests of the company's creditors as a whole, in accordance with the following three objectives, which are in descending order of importance:(a) To rescue the company as a going concern (the primary purpose);(b) To achieve a better result for the company's creditors than would be achieved if the company were wound up; and(c) To realize property to make a distribution to one or more secured or preferential creditors.

(a) To rescue the company as a going concern (the primary purpose);

(b) To achieve a better result for the company's creditors than would be achieved if the company were wound up; and

(c) To realize property to make a distribution to one or more secured or preferential creditors.

2 The collection of assets, payment of debts, and distribution to the beneficiaries of property in the estate of a deceased person. See also grant of representation.

3 The granting of letters of administration in the estate of a deceased person to an administrator, when there is no executor under the will.

4 The process of carrying out duties imposed by a trust in connection with the property of a person of unsound mind or a bankrupt.

Subjects: Law.


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