Insolvency Act 1986, Schedule B1, paragraph 40

SCHEDULE B1 ADMINISTRATION

40(1)A petition for the winding up of a company—

(a)shall be dismissed on the making of an administration order in respect of the company, and

(b)shall be suspended while the company is in administration following an appointment under paragraph 14.

(2)Sub-paragraph (1)(b) does not apply to a petition presented under—

(a)section 124A (public interest), or

[F1301 (aa)section 124B (SEs),F1301]

(b)section 367 of the Financial Services and Markets Act 2000 (c. 8) (petition by [F1302 Financial Conduct Authority or Prudential Regulation AuthorityF1302] ).

(3)Where an administrator becomes aware that a petition was presented under a provision referred to in sub-paragraph (2) before his appointment, he shall apply to the court for directions under paragraph 63.

Definitions used in Schedule B1, paragraph 40 4

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
in administration

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

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

(a) a company is “in administration” while the appointment of an administrator of the company has effect,

Defined in Sch.B1 para.1(2) · 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 40 9

Mark Glenn Hawkes v Gordon Adrian Cook

[2026] EWHC 506 (Comm) · 2 March 2026Defines

Paragraph 40(1) was applied to conclude that the winding-up petition was dismissed when the administration order was made. That consequence meant section 127 was not engaged. (see para [78]) Paragraph 40(1)(a) was applied as requiring dismissal of the winding-up petition on the making of an administration order. (see para [78]) Paragraph 40(1)(b) was stated as providing for suspension of a winding-up petition while the company remained in administration following an appointment under paragraph 14. (see para [78])

Hartley Pensions Limited (in administration) v Wilton UK (Group) Limited

[2023] EWHC 1700 (Ch) · 7 July 2023

Applies the statutory consequence that the winding-up petition falls to be dismissed when an administration order is made. (see paras [5]; [80])

In the matter of MSOLD1 Limited (in administration)

[2022] EWHC 3015 (Ch) · 18 November 2022Interprets

The court treated the petition as suspended while the company remained in administration and revived when the administration ended (see para [36]).

What each judgment says about Schedule B1, paragraph 40 is in the case-law panel in the full Act.

Amendments and notes

7 notes from legislation.gov.uk

Amendments

  1. F1301Sch. B1 para. 40(2)(aa) inserted (8.10.2004) by The European Public Limited-Liability Company Regulations 2004 (S.I. 2004/2326), reg. 73(4)(c)
  2. F1302Words in Sch. B1 para. 40(2)(b) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 55(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Modifications

  1. C1355Sch. B1 para. 40 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 119, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 2
  2. C1356Sch. B1 paras. 40-49 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. C1357Sch. B1 paras. 40-49 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), 11-17 (with reg. 64)
  4. C1358Sch. B1 para. 40(1)(a) 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
  5. C1359Sch. B1 para. 40(1)(a) 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)