Insolvency Act 1986, Schedule B1, paragraph 26

SCHEDULE B1 ADMINISTRATION

26(1)A person who proposes to make an appointment under paragraph 22 shall give at least five business days’ written notice to—

(a)any person who is or may be entitled to appoint an administrative receiver of the company, and

(b)any person who is or may be entitled to appoint an administrator of the company under paragraph 14.

(2)A person who [F1300 gives notice of intention to appoint under sub-paragraph (1)F1300] shall also give such notice as may be prescribed to such other persons as may be prescribed.

(3)A notice under this paragraph must—

(a)identify the proposed administrator, and

(b)be in the prescribed form.

Definitions used in Schedule B1, paragraph 26 4

administrative receiver

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

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
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

Cases considering Schedule B1, paragraph 26 22

JCAM Commercial Real Estate Property XV Ltd v Davis Haulage Ltd

[2017] EWCA Civ 267 · 11 April 2017Interprets

Was construed as requiring a company or its directors to give notice only where there was a settled intention to appoint an administrator. A conditional proposal was insufficient. (see paras [36], [49]-[60], [64]) Requires written notice to the relevant prior appointment holders. The court held that the operative threshold was a settled and unconditional intention to appoint an administrator. (see paras [4], [51]-[57]) The repeated statutory description of a notice of intention supported reading proposes and intends as having a single meaning in this context. (see para [51])

Vybra Solutions Ltd, Re

[2026] EWHC 1125 (Ch) · 2 April 2026

The court applied paragraph 26 as requiring five business days’ written notice to a qualifying floating chargeholder before the proposed appointment. The requirement enables the chargeholder to consider initiating an alternative insolvency process. (see para [3])

Wessely & Anor (Zoom UK Distribution Ltd) v Rubra & Ors

[2021] EWHC 800 (Ch) · 31 March 2021Interprets

Interprets the failure to give the required written notice to a qualifying floating charge holder as a non-fundamental procedural defect rather than a nullity, where no substantial injustice is caused. The appointment therefore remained valid and the defect was curable. (see paras [5]; [15]-[18])

2 more judgments, and what each says about Schedule B1, paragraph 26, are in the case-law panel in the full Act.

Amendments and notes

1 notes from legislation.gov.uk

Amendments

  1. F1300Words in Sch. B1 para. 26(2) substituted (1.10.2015) by Deregulation Act 2015 (c. 20), s. 115(7), Sch. 6 para. 6; S.I. 2015/1732, art. 2(e)(ii)