Module 7 - Process Of Administration

Question 1

5 Advantages of an Administration

Answer 1

Rescue;
Going Concern;
Can Trade;
Sale of Business
Moratorium
Flexible Exit Routes
Out of court process can be cheap and easy

Question 2

5 Advantages of an Administration

Answer 2

Rescue;
Going Concern;
Can Trade;
Sale of Business
Moratorium
Flexible Exit Routes
Out of court process can be cheap and easy

Question 3

5 Disadvantages of Administration

Answer 3

Directors Lose Control;
Administrator takes Over;
Must meet an Objective;
Public Event;
Costs can be High;
Antecedents are Pursued;
CDDA is pursued;
TUPER applies

Question 4

3 Entry Routes to an Administration

Answer 4

Out of Court Appointment - Paragraph 22, Schedule B1 - Directors
Out of Court Appointment - Paragraph 14, Schedule B1 - QFCH
In Court Appointment - Paragraph 12, Schedule B1 - Directors, Company, QFC, Creditor, CVA Supervisor, Liquidator

Question 5

Pre-Conditions of Paragraph 22

Answer 5

No Paragraph 22 in last 12 months;
No Small Company moratorium in last 12 months;
Company is insolvent;
QFC Consent;
Not in (another insolvency procedure) Admin Receivership / Administration / Liquidation
No outstanding Winding Up Petition

Question 6

Board Meeting

Answer 6

Director to Sign Docs;
Place Company into Administration;

Question 7

Who do you need to serve Notice of Intention to Appoint an Administration on?

Answer 7

HCEO; QFCH (5 Business Days), Anyone who can appoint AR; Company; Supervisor of CVA; Distressed Creditors

Question 8

What must be included in the Statutory Declaration of a NOI?

Answer 8

Company is insolvent;
All pre-conditions are met;
Company not in Liquidation

Question 9

Filing fee for NOI

Answer 9

50 pounds

Question 10

How many days between NOI and NOA

Answer 10

10 Business days

Question 11

Statutory Declaration Included in Notice of Appointment

Answer 11

Previous declaration still true;
Directors can appoint;
B1 Compliant

Question 12

What goes into Administrator’s Statement? - Paragraph 100(2)

Answer 12

Statutory purpose will be met;
Consent to act;
No prior relationship

Question 13

Paragraph 14 Pre Conditions?

Answer 13

Valid and enforceable charge;
QFC consent (prior)
Not in: Admin Receivership / Administration / Liquidation
Not in Provisional Liquidation

Question 14

Who to Serve NOI on in Para 14?

Answer 14

QFCH, COmpany, Creditors, CVA Supervisor

Question 15

How long is an NOI valid for before you need to submit NOA?

Answer 15

5 DAYS

Question 16

3 Components of Administrators’ Statements?

Answer 16

Statutory Purpose will be met;
Consent to Act;
No prior relationship

Question 17

Paragraph 12 Pre-Conditions?

Answer 17

Company Insolvent;
Statutory Purpose will be met;
Not in: Admin ; Voluntary Lia / Compulsory Liq

Question 18

How many days between sealing of application and notice?

Answer 18

5 Days

Question 19

Who to serve Notice of Sealing of Application?

Answer 19

Member State Liquidator / Petitioner & PL / AR / proposed Administrator / HCE / QFCH / Company / CVA SUpervisor / Creditors

Question 20

4 Options for Hearing Results?

Answer 20

Interim Order;
Dismiss;
Adjourn;
Wind Up

Question 21

Who to Notify of Administration?

Answer 21

Registrar of Companies;
Gazette;
Company;
HCEO;
Distressed Creditor
CVA Supervisor

Question 22

How many days to submit VAT 761?

Answer 22

21 Days

Question 23

What is deadline to submit Pension Notifications and to who?

Answer 23

14 Days;
Pension Protection Fund;
Pensions Regulator;
trustees of Pension Scheme

Question 24

How long to notify Registrar of Companies?

Answer 24

7 Days

Question 25

Statutory Timeline of Admin

Answer 25

Appointment ;
Steps;
Statement of Affairs - 11 Days;
Proposals - 8 Weeks;
Creditor Decision - 10 Weeks;
Director Report - 3 Months;
Reporting - 6 Months;
Automatic End - 12 Months.

Question 26

3 Exceptions to requirement of Proposal Approval

Answer 26

1 - No distribution to unsecured other than PP;
2 - Unsecured creditors will be paid in full;
3 - Objective (c) is being pursued

Question 27

What does an Interim Moratorium not protect a Company from?

Answer 27

The ability of a QFCH to appoint an Administrator or Administrative Receiver