SCHEDULE B1 ADMINISTRATION
43(1)This paragraph applies to a company in administration.
(2)No step may be taken to enforce security over the company’s property except—
(a)with the consent of the administrator, or
(b)with the permission of the court.
(3)No step may be taken to repossess goods in the company’s possession under a hire-purchase agreement except—
(a)with the consent of the administrator, or
(b)with the permission of the court.
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(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” 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(3) But where the administrator has made a statement under paragraph 52(1)(b) “consent” means—
(a) consent of each secured creditor of the company, or
(b) if the administrator thinks that a distribution may be made to preferential creditors, consent of—
(i) each secured creditor of the company, and
(ii) the preferential creditors of the company.
Defined in Sch.B1 para.108(3) · see it in the full Act1 (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“hire-purchase agreement” includes a conditional sale agreement, a chattel leasing agreement and a retention of title agreement,
Defined in Sch.B1 para.111(1) · see it in the full ActThe moratorium covers only legal process against the company. It does not restrict essentially defensive steps, a joinder application seeking no relief against a claimant company, an appeal retaining that character, or an incidental costs order (see paras [15]-[17]; [25]-[31]).
In construing Paragraph 43(6), the court had regard to Paragraph 43(5) and considered that the legal-process restriction was confined to the United Kingdom. It did not finally decide the point (see para [21]). The court considered that the prohibition on legal process was probably confined to domestic process, but did not decide the issue finally. Its territorial limits did not restrict the court’s equitable jurisdiction to protect an administration (see paras [20]-[22]).
The court treated subparagraphs (4) and (6) as showing that administration may preclude a landlord from enforcing lease terms unless the administrator consents or the court gives permission. (see para [66]) The court applied the statutory bar on proceedings against a company or its property in administration. It exercised the discretion afresh and refused permission because the Atlantic balancing exercise strongly favoured creditors over the landlord’s limited loss. (see paras [48]; [53]; [66]-[68])
60 more judgments, and what each says about Schedule B1, paragraph 43, are in the case-law panel in the full Act.