Insolvency Act 1986, Schedule B1, paragraph 44

SCHEDULE B1 ADMINISTRATION

44(1)This paragraph applies where an administration application in respect of a company has been made and—

(a)the application has not yet been granted or dismissed, or

(b)the application has been granted but the administration order has not yet taken effect.

(2)This paragraph also applies from the time when a copy of notice of intention to appoint an administrator under paragraph 14 is filed with the court until—

(a)the appointment of the administrator takes effect, or

(b)the period of five business days beginning with the date of filing expires without an administrator having been appointed.

(3)Sub-paragraph (2) has effect in relation to a notice of intention to appoint only if it is in the prescribed form.

(4)This paragraph also applies from the time when a copy of notice of intention to appoint an administrator is filed with the court under paragraph 27(1) until—

(a)the appointment of the administrator takes effect, or

(b)the period specified in paragraph 28(2) expires without an administrator having been appointed.

(5)The provisions of paragraphs 42 and 43 shall apply (ignoring any reference to the consent of the administrator).

(6)If there is an administrative receiver of the company when the administration application is made, the provisions of paragraphs 42 and 43 shall not begin to apply by virtue of this paragraph until the person by or on behalf of whom the receiver was appointed consents to the making of the administration order.

(7)This paragraph does not prevent or require the permission of the court for—

(a)the presentation of a petition for the winding up of the company under a provision mentioned in paragraph 42(4),

(b)the appointment of an administrator under paragraph 14,

(c)the appointment of an administrative receiver of the company, or

(d)the carrying out by an administrative receiver (whenever appointed) of his functions.

Definitions used in Schedule B1, paragraph 44 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
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
consent

(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 Act
administrative receiver

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

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

Cases considering Schedule B1, paragraph 44 15

JCAM Commercial Real Estate Property XV Ltd v Davis Haulage Ltd

[2017] EWCA Civ 267 · 11 April 2017Interprets

Provides for interim moratoria in the administration appointment scheme. The court applied the provision to determine when statutory protection arises and ends. (see paras [2], [5], [34]-[38]) Provides for an automatic moratorium on filing an application for a court administration order until the application is determined or an administration order takes effect. (see para [34]) Provides an interim moratorium after a qualifying floating charge holder files a notice of intention to appoint, lasting until appointment or expiry of five business days. (see para [35]) Provides that the interim moratorium begins when a copy of the notice is filed and ends on appointment or expiry of the ten-business-day period. The court held that an invalid notice could not validly invoke it. (see paras [5], [37], [64])

Security Trustee Services Ltd & Ors v Seabrook Road Ltd (Re Seabrook Road Ltd) (Rev 1)

[2021] EWHC 436 (Ch) · 25 January 2021

The judgment confirms that the interim moratorium depends on a validly filed notice of intention to appoint an administrator. Since the notices were invalid, no moratorium came into effect. (see paras [20], [24], [32])

Edwards & Anor v SJ Henderson & Company Ltd (Rev 1)

[2019] EWHC 2742 (Ch) · 10 October 2019

The court used paragraph 44 to confirm that filing a notice of intention to appoint creates an interim moratorium. Because the moratorium is temporary and less onerous than administration, the court found no reason to restrict out-of-hours filing of such notices (see paras [99]-[101]). The court applied paragraph 44(4) to identify the moratorium arising when a notice of intention to appoint is filed and its duration pending appointment or expiry of the prescribed period (see para [9]).

What each judgment says about Schedule B1, paragraph 44 is in the case-law panel in the full Act.

Amendments and notes

9 notes from legislation.gov.uk

Modifications

  1. 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)
  2. 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)
  3. C1368Sch. B1 para. 44 restricted (5.10.2004) by Energy Act 2004 (c. 20), ss. 162(4), 163(4), 198; S.I. 2004/2575, art. 2(1), Sch. 1
  4. C1369Sch. B1 para. 44 restricted (1.10.2011) by Postal Services Act 2011 (c. 5), ss. 76(4), 85(8), 93(2)(3); S.I. 2011/2329, art. 3 (with arts. 4, 5)
  5. C1370Sch. B1 para. 44 restricted (1.10.2011) by Postal Services Act 2011 (c. 5), ss. 77(5), 85(8), 93(2)(3); S.I. 2011/2329, art. 3 (with arts. 4, 5)
  6. C1371Sch. B1 para. 44 excluded (31.1.2019) by Technical and Further Education Act 2017 (c. 19), ss. 9(4), 47(2); S.I. 2018/1161, reg. 3(a)
  7. C1372Sch. B1 para. 44 applied in part (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)
  8. C1373Sch. B1 para. 44(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
  9. C1374Sch. B1 para. 44(5) 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