Insolvency Act 1986, Schedule B1, paragraph 35

SCHEDULE B1 ADMINISTRATION

35(1)This paragraph applies where an administration application in respect of a company—

(a)is made by the holder of a qualifying floating charge in respect of the company’s property, and

(b)includes a statement that the application is made in reliance on this paragraph.

(2)The court may make an administration order—

(a)whether or not satisfied that the company is or is likely to become unable to pay its debts, but

(b)only if satisfied that the applicant could appoint an administrator under paragraph 14.

Definitions used in Schedule B1, paragraph 35 5

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
holder of a qualifying floating charge

“holder of a qualifying floating charge” in respect of a company’s property has the meaning given by paragraph 14,

Defined in Sch.B1 para.111(1) · see it in the full Act
unable to pay its debts

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

Defined in Sch.B1 para.111(1) · 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 35 3

Lending Group Limited & Anor v LVR Capital Ltd & Anor

[2023] EWHC 2509 (Ch) · 4 August 2023Interprets

Applies paragraph 35 to appoint administrators at the application of qualifying floating charge holders. The power exists without proof of inability to pay debts, but the court retains a discretion whether to make the order. (see paras [32]-[40]) Confirms that the word “may” preserves a discretion whether to make an administration order, despite the applicants’ power to appoint administrators. (see paras [36], [39]-[40])

Strategic Advantage SPC v High Street Rooftop Holdings Ltd

[2020] EWHC 2572 (Ch) · 30 September 2020Interprets

Interprets paragraph 35(2) as permitting an administration order whether or not the company is or is likely to become unable to pay its debts, provided the applicant could appoint an administrator under paragraph 14. The provision does not remove the requirement to show a real prospect of achieving a statutory purpose. (see paras [10]; [13])

Baker & Anor v London Bar Company Ltd

[2011] EWHC 3398 (Ch) · 23 June 2011

Applies the provision to a fresh administration application by a secured creditor holding a qualifying floating charge. The application was valid and an administration order was made. (see paras [14]-[16])

What each judgment says about Schedule B1, paragraph 35 is in the case-law panel in the full Act.