Insolvency Act 1986, Schedule B1, paragraph 13

SCHEDULE B1 ADMINISTRATION

13(1)On hearing an administration application the court may—

(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 section 125;

(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 39.

Definitions used in Schedule B1, paragraph 13 3

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

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

Defined in Sch.B1 para.111(1) · 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 13 31

In the matter of the Nortel Companies

[2013] UKSC 52 · 24 July 2013Limits

The power to make payments necessary or incidental to an administrator's functions does not authorise treatment of a non-provable liability as provable contrary to the statutory scheme. (see para [119])

Marko Ventures v London Antiaging Clinic Ltd

[2025] EWHC 340 (Ch) · 21 February 2025

Confirms that satisfaction of the statutory preconditions does not compel an administration order. The court retains a wide discretion to weigh the circumstances, creditor interests and the risks of the proposed connected-party pre-pack (see paras [40]; [54]; [60]).

KRF Services (UK) Ltd & Ors, Re

[2024] EWHC 2978 (Ch) · 26 November 2024

The court exercised its discretion to make an administration order after finding that the statutory conditions were met and that administration would better serve creditors than liquidation. (see paras [14], [61]-[62]) The court used the ancillary-order power to permit specified banking arrangements and possible use of the Insolvency Service Account, subject to consent and necessary sanctions licences. (see paras [118]-[120])

11 more judgments, and what each says about Schedule B1, paragraph 13, are in the case-law panel in the full Act.

Amendments and notes

4 notes from legislation.gov.uk

Modifications

  1. C1347Sch. B1 para. 13 restricted (5.10.2004) by Energy Act 2004 (c. 20), ss. 162(3), 198; S.I. 2004/2575, art. 2(1), Sch. 1
  2. C1348Sch. B1 para. 13 excluded (5.7.2018) by Housing and Planning Act 2016 (c. 22), ss. 106(3), 216(3) (with ss. 116, 117); S.I. 2018/805, reg. 3(a)
  3. C1349Sch. B1 para. 13 restricted (31.1.2019) by Technical and Further Education Act 2017 (c. 19), ss. 9(3), 47(2); S.I. 2018/1161, reg. 3(a)
  4. C1350Sch. B1 para. 13 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), 10 (with reg. 64)