Week 12 - Administrator's Objectives

Question 1

Who can apply for a form for an administrative order?

Answer 1

The directors of the company who just realised that they are in trouble and need this supportive environment, or it could be a creditor who has been supplying materials and has realised they aren’t getting paid

Question 2

What is the law governing administration?

Answer 2

The Insolvency Act

Question 3

What is the first objective of an administrator?

Answer 3

Rescue the company as a going concern

Question 4

What is the second objective of an administrator?

Answer 4

Achieve a better result for the company’s creditors as a whole than what the result would be if the company were wound up

Question 5

What is the third objective of an administrator?

Answer 5

Realize property in order to make a distribution to one or more secured or preferential creditors

Question 6

What are the first 2 things an administrator can do?

Answer 6

• remove or appoint a director
• call a meeting of members or creditors

Question 7

What are the next 2 things an administrator can do?

Answer 7

• apply to court for directors regarding the carrying out of their functions
• make payments to secured or preferential creditors

Question 8

What are the final 2 things an administrator can do?

Answer 8

• make payments to unsecured creditors
• present or defend a petition for the winding up of a company

Question 9

What are the two ways an administrator can be appointed?

Answer 9

By the courts or by the directors

Question 10

What is an administrator?

Answer 10

Someone who is an insolvency practitioner