Insolvency Act 1986, Schedule B1, paragraph 16

SCHEDULE B1 ADMINISTRATION

Definitions used in Schedule B1, paragraph 16 2

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
floating charge

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

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

Cases considering Schedule B1, paragraph 16 19

SAW (SW) 2010 Ltd & Anor v Wilson & Ors

[2017] EWCA Civ 1001 · 25 July 2017Interprets

A charge is enforceable when the creditor has a present contractual right to enforce, including satisfaction of any condition precedent and the continued existence of secured debt. Valuable assets need not be available, and appointing an administrator is itself enforcement. (see paras [29]-[35]; [51]-[52])

Sophie Perhar v Louise Freestone & Ors

[2025] EWHC 3284 (Ch) · 17 December 2025Interprets

The court interprets paragraph 16 as addressing whether a floating charge is enforceable, rather than whether enforcement steps have been taken. Enforceability existed because contractual conditions precedent had been satisfied and secured debt remained. The appointment was therefore not invalid under paragraph 16 (see paras [115]-[119]).

James Hawksworth & Ors v Paul Stanley & Ors

[2025] EWHC 139 (Ch) · 5 February 2025

Paragraph 16 was applied to the claim that the administrators were invalidly appointed because the floating charge was allegedly not enforceable. The court treated that claim as capable of being brought under the insolvency legislation, even though the provision did not specify invalidity as an available remedy. (see paras [11]; [21]; [32])

What each judgment says about Schedule B1, paragraph 16 is in the case-law panel in the full Act.