Insolvency Act 1986, Schedule B1, paragraph 49

SCHEDULE B1 ADMINISTRATION

49(1)The administrator of a company shall make a statement setting out proposals for achieving the purpose of administration.

(2)A statement under sub-paragraph (1) must, in particular—

(a)deal with such matters as may be prescribed, and

(b)where applicable, explain why the administrator thinks that the objective mentioned in paragraph 3(1)(a) or (b) cannot be achieved.

(3)Proposals under this paragraph may include—

(a)a proposal for a voluntary arrangement under Part I of this Act (although this paragraph is without prejudice to section 4(3));

(b)a proposal for a compromise or arrangement to be sanctioned under [F1307 Part 26 [F1308 or 26AF1308] of the Companies Act 2006 (arrangements and reconstructions)F1307] .

(4)The administrator shall send a copy of the statement of his proposals—

(a)to the registrar of companies,

(b)to every creditor of the company [F1309 , other than an opted-out creditor,F1309] of whose claim and address he is aware, and

(c)to every member of the company of whose address he is aware.

(5)The administrator shall comply with sub-paragraph (4)—

(a)as soon as is reasonably practicable after the company enters administration, and

(b)in any event, before the end of the period of eight weeks beginning with the day on which the company enters administration.

(6)The administrator shall be taken to comply with sub-paragraph (4)(c) if he publishes in the prescribed manner a notice undertaking to provide a copy of the statement of proposals free of charge to any member of the company who applies in writing to a specified address.

(7)An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (5).

(8)A period specified in this paragraph may be varied in accordance with paragraph 107.

Definitions used in Schedule B1, paragraph 49 5

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
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
the purpose of administration

“the purpose of administration” means an objective specified in paragraph 3, and

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

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

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

(b) a company “enters administration” when the appointment of an administrator takes effect,

Defined in Sch.B1 para.1(2) · see it in the full Act

Cases considering Schedule B1, paragraph 49 26

Lloyd Edward Hinton & Anor (as joint administrators of Kession Capital Limited) v KVB Consultants Limited & Ors

[2026] EWHC 785 (Ch) · 7 April 2026

The court treated the administrators’ proposals and their rejection by creditors as central to deciding that continued administration had no reasonable prospect of approval. (see paras [12]; [17]; [45]-[46])

A Company, Re

[2025] EWHC 244 (Ch) · 6 February 2025Interprets

Applies the requirement that administrators send their statement of proposals to the specified recipients as soon as reasonably practicable and within eight weeks of entry into administration. (see para [16]) Interprets the provision as allowing the eight-week period to be varied in accordance with paragraph 107, including after the period has expired. (see para [16])

Fitzroy Street Capital Inc & Anor v Lee Antony Manning & Anor

[2022] EWHC 1495 (Ch) · 20 June 2022

Applies the requirement to explain in the statement of proposals why the rescue objective cannot be achieved. The administrators failed adequately to explain that a CVA was not reasonably practicable. (see paras [256]-[258])

6 more judgments, and what each says about Schedule B1, paragraph 49, are in the case-law panel in the full Act.

Amendments and notes

9 notes from legislation.gov.uk

Amendments

  1. F1307Words in Sch. B1 para. 49(3)(b) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 3(1), Sch. 1 para. 100(a) (with arts. 6, 11, 12)
  2. F1308Words in Sch. B1 para. 49(3)(b) inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 9 para. 7(2) (with ss. 2(2), 5(2))
  3. F1309Words in Sch. B1 para. 49(4)(b) inserted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 10(2); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)

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. C1384Sch. B1 para. 49 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 (as amended (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5))
  4. C1385Sch. B1 para. 49 modified (E.W.) (7.6.2013) by The Energy Supply Company Administration Rules 2013 (S.I. 2013/1046), rules 1, 20(2) (with rules 3, 208)
  5. C1386Sch. B1 para. 49 applied (with modifications) (8.7.2021) by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), regs. 2, 37, 39(8), Sch. 2 paras. 3-6 (with regs. 5, 38(6)) (as amended (4.1.2024) by S.I. 2023/1399, regs. 1(2), 4, 11, 13)
  6. C1387Sch. B1 para. 49(4) modified (E.W.) (31.1.2019) by The Further Education Bodies (Insolvency) Regulations 2019 (S.I. 2019/138), regs. 1(1), 27 (with regs. 1(2), 3(a)(ii))