Insolvency Act 1986, Schedule B1, paragraph 111

SCHEDULE B1 ADMINISTRATION

111(1)In this Schedule—

  • “administrative receiver” has the meaning given by section 251,

  • “administrator” has the meaning given by paragraph 1 and, where the context requires, includes a reference to a former administrator,

  • F1398 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • F1399 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • F1399 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • “enters administration” has the meaning given by paragraph 1,

  • “floating charge” means a charge which is a floating charge on its creation,

  • “in administration” has the meaning given by paragraph 1,

  • “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 14,

  • “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 3, and

  • “unable to pay its debts” has the meaning given by section 123.

Definitions used in Schedule B1, paragraph 111 4

administrator

1 (1) For the purposes of this Act “administrator” of a company means a person appointed under this Schedule to manage the company’s affairs, business and property.

Defined in Sch.B1 para.1(1) · see it in the full Act
agreement

4 For the purposes of sections 72B and 72E and this Schedule “agreement” includes an agreement or undertaking effected by—

(a)contract,

(b)deed, or

(c)any other instrument intended to have effect in accordance with the law of England and Wales, Scotland or another jurisdiction.

Defined in Sch.2A para.4 · see it in the full Act

(2) “Agreement” includes any agreement or undertaking effected by—

(a)contract,

(b)deed, or

(c)any other instrument intended to have effect in accordance with the law of England and Wales, Scotland or another jurisdiction.

Defined in Sch.ZA1 para.19(2) · see it in the full Act
the company

2 Section 233B does not apply in relation to a contract for the supply of goods or services to a company (“the company”) where any of paragraphs 3 to 11 applies.

Defined in Sch.4ZZA para.2 · see it in the full Act
company

(1A) In this Schedule, “company” means—

(a)a company registered under the Companies Act 2006 in England and Wales or Scotland,

(b)a company incorporated in an EEA State ..., or

(c)a company not incorporated in an EEA State but having its centre of main interests in a member State (other than Denmark) or in the United Kingdom .

Defined in Sch.B1 para.111(1A) · see it in the full Act

Cases considering Schedule B1, paragraph 111 30

Esken Limited (Overseas Company Number FC041629), Re

[2026] EWHC 495 (Ch) · 6 March 2026Defines

Interprets “company” in Schedule B1 to include a non-EEA company whose centre of main interests is in the United Kingdom. Esken accordingly qualified to use paragraph 83. (see paras [1], [12]-[14], [21]) Confirms that “centre of main interests” has the same meaning as in Article 3 of the applicable EU Regulation. (see para [12])

Petrofac Limited, Re

[2025] EWHC 2887 (Ch) · 27 October 2025

Applies the jurisdictional requirement that the Jersey-incorporated company qualify as a company for Schedule B1 purposes, which required consideration of whether its COMI was in the United Kingdom (see paras [6]; [17]-[23]).

Clare Kennedy & Ors v Fonds Rusnano Capital SA

[2025] EWHC 112 (Ch) · 24 January 2025Defines

The court applied the definition of market value as the amount realisable on an open-market sale by a willing vendor. It held that the assessment was fact-sensitive and did not require a hypothetical delay to seek better offers. (see paras [2], [19], [60], [72], [74])

10 more judgments, and what each says about Schedule B1, paragraph 111, are in the case-law panel in the full Act.

Amendments and notes

6 notes from legislation.gov.uk

Amendments

  1. F1398In Sch. B1 para. 111(1) definition of "company" omitted (13.4.2005) by virtue of The Insolvency Act 1986 (Amendment) Regulations 2005 (S.I. 2005/879), reg. 2(4)(a) (with reg. 3)
  2. F1399Words in Sch. B1 para. 111 omitted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 10(44); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)

Modifications

  1. C1508Sch. B1 paras. 109-111 applied (with modifications) (E.W.) (15.3.2024) by The Water Industry (Special Administration) Regulations 2024 (S.I. 2024/205), regs. 2(2), 5(1), 39, 40 (with reg. 64)
  2. C1510Sch. B1 paras. 109-111 modified (5.7.2018) by Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 5 Pts. 1, 2; S.I. 2018/805, reg. 3(b)
  3. C1511Sch. B1 para. 111 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3 (as amended (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5))
  4. C1512Sch. B1 para. 111 applied (with modifications) (8.7.2021) by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), regs. 2, 37 (with reg. 5) (as amended (4.1.2024) by S.I. 2023/1399, regs. 1(2), 4, 11)