(a) to a floating charge created on or after a date appointed by the Department by order, and

(b) in spite of any provision of an agreement or instrument which purports to empower a person to appoint an administrative receiver (by whatever name).

    (4) An order under paragraph (3)(a) may—

(a) make provision which applies generally or only for a specified purpose;

(b) make different provision for different purposes;

(c) make transitional provision.

(a) which has gone into liquidation,

(b) which is in administration,

(c) of which there is a provisional liquidator, or

(d) of which there is a receiver.

    (2) The liquidator, administrator or receiver—

(a) shall make a prescribed part of the company's net property available for the satisfaction of unsecured debts, and

(b) shall not distribute that part to the proprietor of a floating charge except in so far as it exceeds the amount required for the satisfaction of unsecured debts.

    (3) Paragraph (2) shall not apply to a company if—

(a) the company's net property is less than the prescribed minimum, and

(b) the liquidator, administrator or receiver thinks that the cost of making a distribution to unsecured creditors would be disproportionate to the benefits.

    (4) Paragraph (2) shall also not apply to a company if or in so far as it is disapplied by—

(a) a voluntary arrangement in respect of the company, or

(b) a compromise or arrangement agreed under Article 418 of the Companies Order (compromise with creditors and members).

    (5) Paragraph (2) shall also not apply to a company if—

(a) the liquidator, administrator or receiver applies to the High Court for an order under this paragraph on the ground that the cost of making a distribution to unsecured creditors would be disproportionate to the benefits, and

(b) the Court orders that paragraph (2) shall not apply.

    (6) In paragraphs (2) and (3) a company's net property is the amount of its property which would, but for this Article, be available for satisfaction of claims of holders of debentures secured by, or holders of, any floating charge created by the company.

    (7) An order under paragraph (2) prescribing part of a company's net property may, in particular, provide for its calculation—

(a) as a percentage of the company's net property, or

(b) as an aggregate of different percentages of different parts of the company's net property.

    (8) An order under this Article shall be subject to negative resolution.

    (9) In this Article—

"floating charge" means a charge which is a floating charge on its creation and which is created after the first order under paragraph (2)(a) comes into operation, and

"prescribed" means prescribed by order by the Department.

    (10) An order under this Article may include transitional or incidental provision.".

(a) the end of a specified period, or

(b) the fulfilment of a specified condition.

    (4) The High Court may make an order under paragraph (3) only if satisfied that the bankrupt has failed or is failing to comply with an obligation under this Part.

    (5) In paragraph (3)(b) "condition" includes a condition requiring that the High Court be satisfied of something.

    (6) This Article is without prejudice to any power of the High Court to annul a bankruptcy order.

    (7) Nothing in this Article applies to a bankrupt who is a solicitor.".

(a) investigate the conduct and affairs of each bankrupt (including his conduct and affairs before the making of the bankruptcy order), and

(b) make such report (if any) to the High Court as the official receiver thinks fit.

    (2) Paragraph (1) shall not apply to a case in which the official receiver thinks an investigation under that paragraph unnecessary.

    (3) Where a bankrupt makes an application for discharge under Article 254—

(a) the official receiver shall make a report to the Court about such matters as may be prescribed, and

(b) the Court shall consider the report before determining the application.

    (4) A report by the official receiver under this Article shall in any proceedings be prima facie evidence of the facts stated in it.".

(a) by the trustee, and

(b) before the discharge of the bankrupt.".

(a) may end after the discharge of the bankrupt, but

(b) may not end after the period of 3 years beginning with the date on which the order is made.

    (6A) An income payments order may (subject to paragraph (6)(b)) be varied on the application of the trustee or the bankrupt (whether before or after discharge).

    (6B) Where the Court has made an income payments order in relation to a bankrupt who is a solicitor, nothing in paragraph (6) shall affect the continuance of a condition with respect to income specified in an order made under Article 254(2)(c).".

(a) that the bankrupt is to pay to the trustee or the official receiver an amount equal to a specified part or proportion of the bankrupt's income for a specified period, or

(b) that a third person is to pay to the trustee or the official receiver a specified proportion of money due to the bankrupt by way of income for a specified period.

    (2) A provision of an income payments agreement of a kind specified in paragraph (1)(a) or (b) may be enforced as if it were a provision of an income payments order.

    (3) While an income payments agreement is in force the High Court may, on the application of the bankrupt, his trustee or the official receiver, discharge or vary an attachment of earnings order that is for the time being in force to secure payments by the bankrupt.

    (4) The following provisions of Article 283 shall apply to an income payments agreement as they apply to an income payments order—

(a) paragraph (5) (receipts to form part of estate), and

(b) paragraphs (7) to (9) (meaning of income).

    (5) An income payments agreement must specify the period during which it is to have effect; and that period—

(a) may end after the discharge of the bankrupt, but

(b) may not end after the period of 3 years beginning with the date on which the agreement is made.

    (6) An income payments agreement may (subject to paragraph (5)(b)) be varied—

(a) by written agreement between the parties, or

(b) by the High Court on an application made by the bankrupt, the trustee or the official receiver.

    (7) The High Court—

(a) may not vary an income payments agreement so as to include provision of a kind which could not be included in an income payments order, and

(b) shall grant an application to vary an income payments agreement if and to the extent that the Court thinks variation necessary to avoid the effect mentioned in Article 283(2).".

(a) the bankrupt,

(b) the bankrupt's spouse, or

(c) a former spouse of the bankrupt.

    (2) At the end of the period of 3 years beginning with the date of the bankruptcy the interest mentioned in paragraph (1) shall—

(a) cease to be comprised in the bankrupt's estate, and

(b) vest in the bankrupt (without conveyance, assignment or transfer).

    (3) Paragraph (2) shall not apply if during the period mentioned in that paragraph—

(a) the trustee realises the interest mentioned in paragraph (1),

(b) the trustee applies for an order for sale in respect of the dwelling-house,

(c) the trustee applies for an order for possession of the dwelling-house,

(d) the trustee applies for an order under Article 286 in Chapter IV in respect of that interest, or

(e) the trustee and the bankrupt agree that the bankrupt shall incur a specified liability to his estate (with or without the addition of interest from the date of the agreement) in consideration of which the interest mentioned in paragraph (1) shall cease to form part of the estate.

    (4) Where an application of a kind described in paragraph (3)(b) to (d) is made during the period mentioned in paragraph (2) and is dismissed, unless the High Court orders otherwise the interest to which the application relates shall on the dismissal of the application—

(a) cease to be comprised in the bankrupt's estate, and

(b) vest in the bankrupt (without conveyance, assignment or transfer).

    (5) If the bankrupt does not inform the trustee or the official receiver of his interest in a property before the end of the period of 3 months beginning with the date of the bankruptcy, the period of 3 years mentioned in paragraph (2)—

(a) shall not begin with the date of the bankruptcy, but

(b) shall begin with the date on which the trustee or official receiver becomes aware of the bankrupt's interest.

    (6) The High Court may substitute for the period of 3 years mentioned in paragraph (2) a longer period—

(a) in prescribed circumstances, and

(b) in such other circumstances as the Court thinks appropriate.

    (7) The rules may make provision for this Article to have effect with the substitution of a shorter period for the period of 3 years mentioned in paragraph (2) in specified circumstances (which may be described by reference to action to be taken by a trustee in bankruptcy).

    (8) The rules may also, in particular, make provision—

(a) requiring or enabling the trustee of a bankrupt's estate to give notice that this Article applies or does not apply;

(b) about the effect of a notice under sub-paragraph (a);

(c) requiring the trustee of a bankrupt's estate to make an application to the Land Registry or the Registry of Deeds.

    (9) Rules under paragraph (8)(b) may, in particular—

(a) disapply this Article;

(b) enable the High Court to disapply this Article;

(c) make provision in consequence of a disapplication of this Article;

(d) enable the Court to make provision in consequence of a disapplication of this Article;

(e) make provision (which may include provision conferring jurisdiction on a court or tribunal) about compensation.".

(a) the amount specified in the charging order as the value of the bankrupt's interest in the property at the date of the order, plus

(b) interest on that amount from the date of the charging order at the prescribed rate.

    (2B) In determining the value of an interest for the purposes of this Article the High Court shall disregard any matter which it is required to disregard by the rules.", and

(a) property comprised in the bankrupt's estate consists of an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of—


(i) the bankrupt,

(ii) the bankrupt's spouse, or

(iii) a former spouse of the bankrupt, and



(b) the trustee applies for an order for the sale of the property, for an order for possession of the property or for an order under Article 286 in respect of the property.

    (2) The High Court shall dismiss the application if the value of the interest is below such amount as may for the time being be specified for the purposes of this paragraph by order under Article 362(1)(b).

    (3) In determining the value of an interest for the purposes of this Article the High Court shall disregard any matter which it is required to disregard by the order which specifies the amount for the purposes of paragraph (2).".

" (aa) any property vesting in the bankrupt by virtue of Article 256A in Chapter II,".

" Article 286A (value of property below which application for sale, possession or charge to be dismissed);".

" (b) is the subject of a bankruptcy restrictions order or interim order;".

(a) may, with the concurrence of the Department of Finance and Personnel, by order subject to negative resolution require a body to pay a fee in connection with the grant or maintenance of recognition of the body under Article 350, and

(b) may refuse recognition, or revoke an order of recognition under Article 350(1) by a further order, where a fee is not paid.

    (2) The Department—

(a) may, with the concurrence of the Department of Finance and Personnel, by order subject to negative resolution require a person to pay a fee in connection with the grant or maintenance of authorisation of the person under Article 352, and

(b) may disregard an application or withdraw an authorisation where a fee is not paid.

    (3) The Department may by order subject to negative resolution require the payment of fees in respect of—

(a) the operation of the Insolvency Account;

(b) payments into and out of that Account.

    (4) The Department of Finance and Personnel may direct by whom and in what manner the fees are to be collected and accounted for.

    (5) Paragraphs (3) and (5) of Article 361 apply to fees under this Article as they apply to fees under that Article.

    (6) Nothing in this Article prejudices the provision contained in Article 361.".

"administrative receiver" has the meaning given by Article 5(1),

"administrator" has the meaning given by paragraph 2 and, where the context requires, includes a reference to a former administrator,

"company" includes a company which may enter administration by virtue of Article 3 of the EC Regulation,

"correspondence" includes correspondence by telephonic or other electronic means,

"creditors' meeting" has the meaning given by paragraph 51,

"enters administration" has the meaning given by paragraph 2,

"floating charge" means a charge which is a floating charge on its creation,

"in administration" has the meaning given by paragraph 2,

"hire-purchase agreement" includes a conditional sale agreement, a chattel leasing agreement and a retention of title agreement,

"holder of a qualifying floating charge" in respect of a company's property has the meaning given by paragraph 15,

"market value" means the amount which would be realised on a sale of property in the open market by a willing vendor,

"the purpose of administration" means an objective specified in paragraph 4, and

"unable to pay its debts" has the meaning given by Article 103.

    (2) A reference in this Schedule to a thing in writing includes a reference to a thing in electronic form.

    (3) In this Schedule a reference to action includes a reference to inaction.

(a) a company is "in administration" while the appointment of an administrator of the company has effect,

(b) a company "enters administration" when the appointment of an administrator takes effect,

(c) a company ceases to be in administration when the appointment of an administrator of the company ceases to have effect in accordance with this Schedule, and

(d) a company does not cease to be in administration merely because an administrator vacates office (by reason of resignation, death or otherwise) or is removed from office.

     3. A person may be appointed as administrator of a company—

(a) by administration order of the High Court under paragraph 11,

(b) by the holder of a floating charge under paragraph 15, or

(c) by the company or its directors under paragraph 23.

Purpose of administration

     4. —(1) The administrator of a company must perform his functions with the objective of—

(a) rescuing the company as a going concern, or

(b) achieving a better result for the company's creditors as a whole than would be likely if the company were wound up (without first being in administration), or

(c) realising property in order to make a distribution to one or more secured or preferential creditors.

    (2) Subject to sub-paragraph (4), the administrator of a company must perform his functions in the interests of the company's creditors as a whole.

    (3) The administrator must perform his functions with the objective specified in sub-paragraph (1)(a) unless he thinks either—

(a) that it is not reasonably practicable to achieve that objective, or

(b) that the objective specified in sub-paragraph (1)(b) would achieve a better result for the company's creditors as a whole.

    (4) The administrator may perform his functions with the objective specified in sub-paragraph (1)(c) only if—

(a) he thinks that it is not reasonably practicable to achieve either of the objectives specified in sub-paragraph (1)(a) and (b), and

(b) he does not unnecessarily harm the interests of the creditors of the company as a whole.

     5. The administrator of a company must perform his functions as quickly and efficiently as is reasonably practicable.

(a) a resolution for voluntary winding up, or

(b) a winding-up order.

    (2) Sub-paragraph (1)(a) is subject to paragraph 39.

    (3) Sub-paragraph (1)(b) is subject to paragraphs 38 and 39.

     10. —(1) A person may not be appointed as administrator of a company which—

(a) has a liability in respect of a deposit which it accepted in accordance with the Banking Act 1979 (c. 37) or 1987 (c. 22), but

(b) is not an authorised deposit taker.

    (2) A person may not be appointed as administrator of a company which effects or carries out contracts of insurance.

    (3) But sub-paragraph (2) does not apply to a company which—

(a) is exempt from the general prohibition in relation to effecting or carrying out contracts of insurance, or

(b) is an authorised deposit taker effecting or carrying out contracts of insurance in the course of a banking business.

    (4) In this paragraph—

"authorised deposit taker" means a person with permission under Part IV of the Financial Services and Markets Act 2000 (c. 8) to accept deposits, and

"the general prohibition" has the meaning given by section 19 of that Act.

    (5) This paragraph shall be construed in accordance with—

(a) section 22 of the Financial Services and Markets Act 2000 (classes of regulated activity and categories of investment),

(b) any relevant order under that section, and

(c) Schedule 2 to that Act (regulated activities).

(a) that the company is or is likely to become unable to pay its debts, and

(b) that the administration order is reasonably likely to achieve the purpose of administration.

Administration application

     13. —(1) An application to the High Court for an administration order in respect of a company (an "administration application") may be made only by—

(a) the company,

(b) the directors of the company,

(c) one or more creditors of the company,

(d) the chief clerk in the exercise of the power conferred by section 35(4A) of the Criminal Justice Act (Northern Ireland) 1945 (c. 15) (fine imposed on company),

(e) a clerk of petty sessions in exercise of the power conferred by Article 92A of the Magistrates' Courts (Northern Ireland) Order 1981 (NI 26), (fines imposed on company), or

(f) a combination of persons listed in paragraphs (a) to (e).

    (2) As soon as is reasonably practicable after the making of an administration application the applicant shall notify—

(a) any person who has appointed an administrative receiver of the company,

(b) any person who is or may be entitled to appoint an administrative receiver of the company,

(c) any person who is or may be entitled to appoint an administrator of the company under paragraph 15, and

(d) such other persons as may be prescribed.

    (3) An administration application may not be withdrawn without the permission of the Court.

    (4) In sub-paragraph (1) "creditor" includes a contingent creditor and a prospective creditor.

    (5) Sub-paragraph (1) is without prejudice to Article 20(4)(b).

(a) make the administration order sought;

(b) dismiss the application;

(c) adjourn the hearing conditionally or unconditionally;

(d) make an interim order;

(e) treat the application as a winding-up petition and make any order which the Court could make under Article 105;

(f) make any other order which the Court thinks appropriate.

    (2) An appointment of an administrator by administration order takes effect—

(a) at a time appointed by the order, or

(b) where no time is appointed by the order, when the order is made.

    (3) An interim order under sub-paragraph (1)(d) may, in particular—

(a) restrict the exercise of a power of the directors or the company;

(b) make provision conferring a discretion on the Court or on a person qualified to act as an insolvency practitioner in relation to the company.

    (4) This paragraph is subject to paragraph 40.

(a) states that this paragraph applies to the floating charge,

(b) purports to empower the holder of the floating charge to appoint an administrator of the company, or

(c) purports to empower the holder of the floating charge to make an appointment which would be the appointment of an administrative receiver within the meaning given by Article 5(1).

    (3) For the purposes of sub-paragraph (1) a person is the holder of a qualifying floating charge in respect of a company's property if he holds one or more debentures of the company secured—

(a) by a qualifying floating charge which relates to the whole or substantially the whole of the company's property,

(b) by a number of qualifying floating charges which together relate to the whole or substantially the whole of the company's property, or

(c) by charges and other forms of security which together relate to the whole or substantially the whole of the company's property and at least one of which is a qualifying floating charge.

Restrictions on power to appoint

     16. —(1) A person may not appoint an administrator under paragraph 15 unless—

(a) he has given at least 2 business days' written notice to the holder of any prior floating charge which satisfies paragraph 15(2), or

(b) the holder of any prior floating charge which satisfies paragraph 15(2) has consented in writing to the making of the appointment.

    (2) One floating charge is prior to another for the purposes of this paragraph if—

(a) it was created first, or

(b) it is to be treated as having priority in accordance with an agreement to which the holder of each floating charge was party.

     17. An administrator may not be appointed under paragraph 15 while a floating charge on which the appointment relies is not enforceable.

     18. An administrator of a company may not be appointed under paragraph 15 if—

(a) a provisional liquidator of the company has been appointed under Article 115, or

(b) an administrative receiver of the company is in office.

Notice of appointment

     19. —(1) A person who appoints an administrator of a company under paragraph 15 shall file with the High Court—

(a) a notice of appointment, and

(b) such other documents as may be prescribed.

    (2) The notice of appointment must include a statutory declaration by or on behalf of the person who makes the appointment—

(a) that the person is the holder of a qualifying floating charge in respect of the company's property,

(b) that each floating charge relied on in making the appointment is (or was) enforceable on the date of the appointment, and

(c) that the appointment is in accordance with this Schedule.

    (3) The notice of appointment must identify the administrator and must be accompanied by a statement by the administrator—

(a) that he consents to the appointment,

(b) that in his opinion the purpose of administration is reasonably likely to be achieved, and

(c) giving such other information and opinions as may be prescribed.

    (4) For the purpose of a statement under sub-paragraph (3) an administrator may rely on information supplied by directors of the company (unless he has reason to doubt its accuracy).

    (5) The notice of appointment and any document accompanying it must be in the prescribed form.

    (6) A statutory declaration under sub-paragraph (2) must be made during the prescribed period.

    (7) A person commits an offence if in a statutory declaration under sub-paragraph (2) he makes a statement—

(a) which is false, and

(b) which he does not reasonably believe to be true.

Commencement of appointment

     20. The appointment of an administrator under paragraph 15 takes effect when the requirements of paragraph 19 are satisfied.

     21. A person who appoints an administrator under paragraph 15—

(a) shall notify the administrator and such other persons as may be prescribed as soon as is reasonably practicable after the requirements of paragraph 19 are satisfied, and

(b) commits an offence if he fails without reasonable excuse to comply with paragraph (a).

Invalid appointment: indemnity

     22. —(1) This paragraph applies where—

(a) a person purports to appoint an administrator under paragraph 15, and

(b) the appointment is discovered to be invalid.

    (2) The High Court may order the person who purported to make the appointment to indemnify the person appointed against liability which arises solely by reason of the appointment's invalidity.

(a) under paragraph 23, or

(b) on an administration application made by the company or its directors.

    (2) An administrator of the company may not be appointed under paragraph 23 during the period of 12 months beginning with the date on which the appointment referred to in sub-paragraph (1) ceases to have effect.

     25. —(1) If a moratorium for a company under Schedule A1 ends on a date when no voluntary arrangement is in force in respect of the company, this paragraph applies for the period of 12 months beginning with that date.

    (2) This paragraph also applies for the period of 12 months beginning with the date on which a voluntary arrangement in respect of a company ends if—

(a) the arrangement was made during a moratorium for the company under Schedule A1, and

(b) the arrangement ends prematurely (within the meaning of Article 20B).

    (3) While this paragraph applies, an administrator of the company may not be appointed under paragraph 23.

     26. An administrator of a company may not be appointed under paragraph 23 if—

(a) a petition for the winding up of the company has been presented and is not yet disposed of,

(b) an administration application has been made and is not yet disposed of, or

(c) an administrative receiver of the company is in office.

Notice of intention to appoint

     27. —(1) A person who proposes to make an appointment under paragraph 23 shall give at least 5 business days' written notice to—

(a) any person who is or may be entitled to appoint an administrative receiver of the company, and

(b) any person who is or may be entitled to appoint an administrator of the company under paragraph 15.

    (2) A person who proposes to make an appointment under paragraph 23 shall also give such notice as may be prescribed to such other persons as may be prescribed.

    (3) A notice under this paragraph must—

(a) identify the proposed administrator, and

(b) be in the prescribed form.

     28. —(1) A person who gives notice of intention to appoint under paragraph 27 shall file with the High Court as soon as is reasonably practicable a copy of—

(a) the notice, and

(b) any document accompanying it.

    (2) The copy filed under sub-paragraph (1) must be accompanied by a statutory declaration made by or on behalf of the person who proposes to make the appointment—

(a) that the company is or is likely to become unable to pay its debts,

(b) that the company is not in liquidation, and

(c) that, so far as the person making the statement is able to ascertain, the appointment is not prevented by paragraphs 24 to 26, and

(d) to such additional effect, and giving such information, as may be prescribed.

    (3) A statutory declaration under sub-paragraph (2) must—

(a) be in the prescribed form, and

(b) be made during the prescribed period.

    (4) A person commits an offence if in a statutory declaration under sub-paragraph (2) he makes a statement—

(a) which is false, and

(b) which he does not reasonably believe to be true.

     29. —(1) An appointment may not be made under paragraph 23 unless the person who makes the appointment has complied with any requirement of paragraphs 27 and 28 and—

(a) the period of notice specified in paragraph 27(1) has expired, or

(b) each person to whom notice has been given under paragraph 27(1) has consented in writing to the making of the appointment.

    (2) An appointment may not be made under paragraph 23 after the period of 10 business days beginning with the date on which the notice of intention to appoint is filed under paragraph 28(1).

(a) a notice of appointment, and

(b) such other documents as may be prescribed.

    (2) The notice of appointment must include a statutory declaration by or on behalf of the person who makes the appointment—

(a) that the person is entitled to make an appointment under paragraph 23,

(b) that the appointment is in accordance with this Schedule, and

(c) that, so far as the person making the statement is able to ascertain, the statements made and information given in the statutory declaration filed with the notice of intention to appoint remain accurate.

    (3) The notice of appointment must identify the administrator and must be accompanied by a statement by the administrator—

(a) that he consents to the appointment,

(b) that in his opinion the purpose of administration is reasonably likely to be achieved, and

(c) giving such other information and opinions as may be prescribed.

    (4) For the purpose of a statement under sub-paragraph (3) an administrator may rely on information supplied by directors of the company (unless he has reason to doubt its accuracy).

    (5) The notice of appointment and any document accompanying it must be in the prescribed form.

    (6) A statutory declaration under sub-paragraph (2) must be made during the prescribed period.

    (7) A person commits an offence if in a statutory declaration under sub-paragraph (2) he makes a statement—

(a) which is false, and

(b) which he does not reasonably believe to be true.

     31. In a case in which no person is entitled to notice of intention to appoint under paragraph 27(1) (and paragraph 29 therefore does not apply)—

(a) the statutory declaration accompanying the notice of appointment must include the statements and information required under paragraph 28(2), and

(b) paragraph 30(2)(c) shall not apply.

Commencement of appointment

     32. The appointment of an administrator under paragraph 23 takes effect when the requirements of paragraph 30 are satisfied.

     33. A person who appoints an administrator under paragraph 23—

(a) shall notify the administrator and such other persons as may be prescribed as soon as is reasonably practicable after the requirements of paragraph 30 are satisfied, and

(b) commits an offence if he fails without reasonable excuse to comply with paragraph (a).

     34. If before the requirements of paragraph 30 are satisfied the company enters administration by virtue of an administration order or an appointment under paragraph 15—

(a) the appointment under paragraph 23 shall not take effect, and

(b) paragraph 33 shall not apply.

Invalid appointment: indemnity

     35. —(1) This paragraph applies where—

(a) a person purports to appoint an administrator under paragraph 23, and

(b) the appointment is discovered to be invalid.

    (2) The High Court may order the person who purported to make the appointment to indemnify the person appointed against liability which arises solely by reason of the appointment's invalidity.

(a) is made by the holder of a qualifying floating charge in respect of the company's property, and

(b) includes a statement that the application is made in reliance on this paragraph.

    (2) The High Court may make an administration order—

(a) whether or not satisfied that the company is or is likely to become unable to pay its debts, but

(b) only if satisfied that the applicant could appoint an administrator under paragraph 15.

Intervention by holder of floating charge

     37. —(1) This paragraph applies where—

(a) an administration application in respect of a company is made by a person who is not the holder of a qualifying floating charge in respect of the company's property, and

(b) the holder of a qualifying floating charge in respect of the company's property applies to the High Court to have a specified person appointed as administrator (and not the person specified by the administration applicant).

    (2) The Court shall grant an application under sub-paragraph (1)(b) unless the Court thinks it right to refuse the application because of the particular circumstances of the case.

(a) the Court shall discharge the winding-up order,

(b) the Court shall make provision for such matters as may be prescribed,

(c) the Court may make other consequential provision,

(d) the Court shall specify which of the powers under this Schedule are to be exercisable by the administrator, and

(e) this Schedule shall have effect with such modifications as the Court may specify.

     39. —(1) The liquidator of a company may make an administration application.

    (2) If the High Court makes an administration order on hearing an application made by virtue of sub-paragraph (1)—

(a) the Court shall discharge any winding-up order in respect of the company,

(b) the Court shall make provision for such matters as may be prescribed,

(c) the Court may make other consequential provision,

(d) the Court shall specify which of the powers under this Schedule are to be exercisable by the administrator, and

(e) this Schedule shall have effect with such modifications as the Court may specify.

Effect of administrative receivership

     40. —(1) Where there is an administrative receiver of a company the High Court must dismiss an administration application in respect of the company unless—

(a) the person by or on behalf of whom the receiver was appointed consents to the making of the administration order,

(b) the Court thinks that the security by virtue of which the receiver was appointed would be liable to be released or discharged under Articles 202 to 204 (transaction at undervalue and preference) if an administration order were made, or

(c) the Court thinks that the security by virtue of which the receiver was appointed would be avoided under Article 207 (avoidance of floating charge) if an administration order were made.

    (2) Sub-paragraph (1) applies whether the administrative receiver is appointed before or after the making of the administration application.

(a) shall be dismissed on the making of an administration order in respect of the company, and

(b) shall be suspended while the company is in administration following an appointment under paragraph 15.

    (2) Sub-paragraph (1)(b) does not apply to a petition presented under—

(a) Article 104A (public interest),

(b) Article 104B (SEs), or

(c) section 367 of the Financial Services and Markets Act 2000 (c. 8) (petition by Financial Services Authority).

    (3) Where an administrator becomes aware that a petition was presented under a provision referred to in sub-paragraph (2) before his appointment, he shall apply to the High Court for directions under paragraph 64.

(a) his remuneration shall be charged on and paid out of any property of the company which was in his custody or under his control immediately before he vacated office, and

(b) he need not take any further steps under Article 50.

    (4) In the application of sub-paragraph (3)(a)—

(a) "remuneration" includes expenses properly incurred and any indemnity to which the administrative receiver or receiver is entitled out of the assets of the company,

(b) the charge imposed takes priority over security held by the person by whom or on whose behalf the administrative receiver or receiver was appointed, and

(c) the provision for payment is subject to paragraph 44.

Moratorium on insolvency proceedings

     43. —(1) This paragraph applies to a company in administration.

    (2) No resolution may be passed for the winding up of the company.

    (3) No order may be made for the winding up of the company.

    (4) Sub-paragraph (3) does not apply to an order made on a petition presented under—

(a) Article 104A (public interest),

(b) Article 104B (SEs), or

(c) section 367 of the Financial Services and Markets Act 2000 (c. 8) (petition by Financial Services Authority).

    (5) If a petition presented under a provision referred to in sub-paragraph (4) comes to the attention of the administrator, he shall apply to the High Court for directions under paragraph 64.

(a) with the consent of the administrator, or

(b) with the permission of the High Court.

    (3) No step may be taken to repossess goods in the company's possession under a hire-purchase agreement except—

(a) with the consent of the administrator, or

(b) with the permission of the Court.

    (4) A landlord may not exercise a right of forfeiture by peaceable re-entry in relation to premises let to the company except—

(a) with the consent of the administrator, or

(b) with the permission of the Court.

    (5) No legal process (including legal proceedings, execution and distress) may be instituted or continued against the company or property of the company except—

(a) with the consent of the administrator, or

(b) with the permission of the Court.

    (6) An administrative receiver of the company may not be appointed.

    (7) Where the Court gives permission for a transaction under this paragraph it may impose a condition on or a requirement in connection with the transaction.

    (8) In this paragraph "landlord" includes a person to whom rent is payable.

(a) the application has not yet been granted or dismissed, or

(b) the application has been granted but the administration order has not yet taken effect.

    (2) This paragraph also applies from the time when a copy of notice of intention to appoint an administrator under paragraph 15 is filed with the High Court until—

(a) the appointment of the administrator takes effect, or

(b) the period of 5 business days beginning with the date of filing expires without an administrator having been appointed.

    (3) Sub-paragraph (2) has effect in relation to a notice of intention to appoint only if it is in the prescribed form.

    (4) This paragraph also applies from the time when a copy of notice of intention to appoint an administrator is filed with the Court under paragraph 28(1) until—

(a) the appointment of the administrator takes effect, or

(b) the period specified in paragraph 29(2) expires without an administrator having been appointed.

    (5) The provisions of paragraphs 43 and 44 shall apply (ignoring any reference to the consent of the administrator).

    (6) If there is an administrative receiver of the company when the administration application is made, the provisions of paragraphs 43 and 44 shall not begin to apply by virtue of this paragraph until the person by or on behalf of whom the receiver was appointed consents to the making of the administration order.

    (7) This paragraph does not prevent or require the permission of the High Court for—

(a) the presentation of a petition for the winding up of the company under a provision mentioned in paragraph 43(4),

(b) the appointment of an administrator under paragraph 15,

(c) the appointment of an administrative receiver of the company, or

(d) the carrying out by an administrative receiver (whenever appointed) of his functions.

Publicity

     46. —(1) While a company is in administration every business document issued by or on behalf of the company or the administrator must state—

(a) the name of the administrator, and

(b) that the affairs, business and property of the company are being managed by him.

    (2) Any of the following commits an offence if without reasonable excuse he authorises or permits a contravention of sub-paragraph (1)—

(a) the administrator,

(b) an officer of the company, and

(c) the company.

    (3) In sub-paragraph (1) "business document" means—

(a) an invoice,

(b) an order for goods or services, and

(c) a business letter.

(a) send a notice of his appointment to the company, and

(b) publish a notice of his appointment in the prescribed manner.

    (3) As soon as is reasonably practicable the administrator shall—

(a) obtain a list of the company's creditors, and

(b) send a notice of his appointment to each creditor of whose claim and address he is aware.

    (4) The administrator shall send a notice of his appointment to the registrar before the end of the period of 7 days beginning with the date specified in sub-paragraph (6).

    (5) The administrator shall send a notice of his appointment to such persons as may be prescribed before the end of the prescribed period beginning with the date specified in sub-paragraph (6).

    (6) The date for the purpose of sub-paragraphs (4) and (5) is—

(a) in the case of an administrator appointed by administration order, the date of the order,

(b) in the case of an administrator appointed under paragraph 15, the date on which he receives notice under paragraph 21, and

(c) in the case of an administrator appointed under paragraph 23, the date on which he receives notice under paragraph 33.

    (7) The High Court may direct that sub-paragraph (3)(b) or (5)—

(a) shall not apply, or

(b) shall apply with the substitution of a different period.

    (8) A notice under this paragraph must—

(a) contain the prescribed information, and

(b) be in the prescribed form.

    (9) An administrator commits an offence if he fails without reasonable excuse to comply with a requirement of this paragraph.

(a) be verified by affidavit,

(b) be in the prescribed form,

(c) give particulars of the company's property, debts and liabilities,

(d) give the names and addresses of the company's creditors,

(e) specify the security held by each creditor,

(f) give the date on which each security was granted, and

(g) contain such other information as may be prescribed.

    (3) In sub-paragraph (1) "relevant person" means—

(a) a person who is or has been an officer of the company,

(b) a person who took part in the formation of the company during the period of one year ending with the date on which the company enters administration,

(c) a person employed by the company during that period, and

(d) a person who is or has been during that period an officer or employee of a company which is or has been during that year an officer of the company.

    (4) For the purpose of sub-paragraph (3) a reference to employment is a reference to employment through a contract of employment or a contract for services.

     49. —(1) A person required to submit a statement of affairs must do so before the end of the period of 11 days beginning with the day on which he receives notice of the requirement.

    (2) The administrator may—

(a) revoke a requirement under paragraph 48(1), or

(b) extend the period specified in sub-paragraph (1) (whether before or after expiry).

    (3) If the administrator refuses a request to act under sub-paragraph (2)—

(a) the person whose request is refused may apply to the High Court, and

(b) the Court may take action of a kind specified in sub-paragraph (2).

    (4) A person commits an offence if he fails without reasonable excuse to comply with a requirement under paragraph 48(1).

(a) deal with such matters as may be prescribed, and

(b) where applicable, explain why the administrator thinks that the objective mentioned in paragraph 4(1)(a) or (b) cannot be achieved.

    (3) Proposals under this paragraph may include—

(a) a proposal for a voluntary arrangement under Part II of this Order (although this paragraph is without prejudice to Article 17(3));

(b) a proposal for a compromise or arrangement to be sanctioned under Article 418 of the Companies Order (compromise with creditors or members).

    (4) The administrator shall send a copy of the statement of his proposals—

(a) to the registrar,

(b) to every creditor of the company of whose claim and address he is aware, and

(c) to every member of the company of whose address he is aware.

    (5) The administrator shall comply with sub-paragraph (4)—

(a) as soon as is reasonably practicable after the company enters administration, and

(b) in any event, before the end of the period of 8 weeks beginning with the day on which the company enters administration.

    (6) The administrator shall be taken to comply with sub-paragraph (4)(c) if he publishes in the prescribed manner a notice undertaking to provide a copy of the statement of proposals free of charge to any member of the company who applies in writing to a specified address.

    (7) An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (5).

    (8) A period specified in this paragraph may be varied in accordance with paragraph 108.

(a) in the prescribed manner, and

(b) giving the prescribed period of notice to every creditor of the company of whose claim and address he is aware.

    (2) A period prescribed under sub-paragraph (1)(b) may be varied in accordance with paragraph 108.

    (3) A creditors' meeting shall be conducted in accordance with the rules.

(a) as soon as is reasonably practicable after the company enters administration, and

(b) in any event, within the period of 10 weeks beginning with the date on which the company enters administration.

    (3) An administrator shall present a copy of his statement of proposals to an initial creditors' meeting.

    (4) A period specified in this paragraph may be varied in accordance with paragraph 108.

    (5) An administrator commits an offence if he fails without reasonable excuse to comply with a requirement of this paragraph.

     53. —(1) Paragraph 52(1) shall not apply where the statement of proposals states that the administrator thinks—

(a) that the company has sufficient property to enable each creditor of the company to be paid in full,

(b) that the company has insufficient property to enable a distribution to be made to unsecured creditors other than by virtue of Article 150A(2)(a), or

(c) that neither of the objectives specified in paragraph 4(1)(a) and (b) can be achieved.

    (2) But the administrator shall summon an initial creditors' meeting if it is requested—

(a) by creditors of the company whose debts amount to at least 10 per cent. of the total debts of the company,

(b) in the prescribed manner, and

(c) in the prescribed period.

    (3) A meeting requested under sub-paragraph (2) must be summoned for a date in the prescribed period.

    (4) The period prescribed under sub-paragraph (3) may be varied in accordance with paragraph 108.

(a) approve them without modification, or

(b) approve them with modification to which the administrator consents.

    (2) After the conclusion of an initial creditors' meeting the administrator shall as soon as is reasonably practicable report any decision taken to—

(a) the High Court,

(b) the registrar, and

(c) such other persons as may be prescribed.

    (3) An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (2).

(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 proposals, and

(c) the administrator thinks that the proposed revision is substantial.

    (2) The administrator shall—

(a) summon a creditors' meeting,

(b) send a statement in the prescribed form of the proposed revision with the notice of the meeting sent to each creditor,

(c) send a copy of the statement, within the prescribed period, to each member of the company of whose address he is aware, and

(d) present a copy of the statement to the meeting.

    (3) The administrator shall be taken to have complied with sub-paragraph (2)(c) if he publishes a notice undertaking to provide a copy of the statement free of charge to any member of the company who applies in writing to a specified address.

    (4) A notice under sub-paragraph (3) must be published—

(a) in the prescribed manner, and

(b) within the prescribed period.

    (5) A creditors' meeting to which a proposed revision is presented shall consider it and may—

(a) approve it without modification, or

(b) approve it with modification to which the administrator consents.

    (6) After the conclusion of a creditors' meeting the administrator shall as soon as is reasonably practicable report any decision taken to—

(a) the High Court,

(b) the registrar, and

(c) such other persons as may be prescribed.

    (7) An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (6).

(a) an initial creditors' meeting has failed to approve the administrator's proposals presented to it, or

(b) a creditors' meeting has failed to approve a revision of the administrator's proposals presented to it.

    (2) The Court may—

(a) provide that the appointment of an administrator shall cease to have effect from a specified time;

(b) adjourn the hearing conditionally or unconditionally;

(c) make an interim order;

(d) make an order on a petition for winding up suspended by virtue of paragraph 41(1)(b);

(e) make any other order (including an order making consequential provision) that the Court thinks appropriate.

Further creditors' meetings

     57. —(1) The administrator of a company shall summon a creditors' meeting if—

(a) it is requested in the prescribed manner by creditors of the company whose debts amount to at least 10 per cent. of the total debts of the company, or

(b) he is directed by the High Court to summon a creditors' meeting.

    (2) An administrator commits an offence if he fails without reasonable excuse to summon a creditors' meeting as required by this paragraph.

(a) to attend on the committee at any reasonable time of which he is given at least 7 days' notice, and

(b) to provide the committee with information about the exercise of his functions.

Correspondence instead of creditors' meeting

     59. —(1) Anything which is required or permitted by or under this Schedule to be done at a creditors' meeting may be done by correspondence between the administrator and creditors—

(a) in accordance with the rules, and

(b) subject to any prescribed condition.

    (2) A reference in this Schedule to anything done at a creditors' meeting includes a reference to anything done in the course of correspondence in reliance on sub-paragraph (1).

    (3) A requirement to hold a creditors' meeting is satisfied by conducting correspondence in accordance with this paragraph.

(a) may remove a director of the company, and

(b) may appoint a director of the company (whether or not to fill a vacancy).

     63. The administrator of a company may call a meeting of members or creditors of the company.

     64. The administrator of a company may apply to the High Court for directions in connection with his functions.

     65. —(1) A company in administration or an officer of a company in administration may not exercise a management power without the consent of the administrator.

    (2) For the purpose o