Insolvency Act 1986, Schedule B1, paragraph 53

SCHEDULE B1 ADMINISTRATION

53[F1316 (1)The company's creditors may approve the administrator's proposals—

(a)without modification, or

(b)with modification to which the administrator consents.F1316]

(2)[F1317 TheF1317] administrator shall as soon as is reasonably practicable report any decision taken [F1318 by the company's creditorsF1318] to—

(a)the court,

(b)the registrar of companies, and

(c)such other persons as may be prescribed.

(3)An administrator commits an offence if he fails without reasonable excuse to comply with sub-paragraph (2).

Definitions used in Schedule B1, paragraph 53 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
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

Cases considering Schedule B1, paragraph 53 7

Promontoria (Chestnut) Ltd v Craig & Anor

[2017] EWHC 2405 (Ch) · 31 August 2017Interprets

Interprets the effect of deemed consent by treating it as approval of the administrators’ proposals for the purposes of the statutory directions regime. A direction reinstating the receivers would therefore be inconsistent with the approved proposals (see paras [46]-[48]).

Holgate & Anor v Reid & Anor

[2013] EWHC 4630 (Ch) · 20 February 2013Interprets

Interprets references to proposals approved under paragraph 53 consistently with paragraph 68(1). The expression includes proposals deemed approved under rule 2.33(5) (see paras [30]; [39]).

Lavin & Ors v Swindell

[2012] EWHC 2398 (Ch) · 23 August 2012Interprets

The court applied the provision to determine that creditors could approve proposals, or approve modifications to which the administrator consented, but could not impose the disputed modifications. The proposals were therefore rejected. (see paras [52]; [55])

What each judgment says about Schedule B1, paragraph 53 is in the case-law panel in the full Act.

Amendments and notes

6 notes from legislation.gov.uk

Amendments

  1. F1316Sch. B1 para. 53(1) substituted (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(9); 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)
  2. F1317Word in Sch. B1 para. 53(2) substituted (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(10)(a); 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)
  3. F1318Words in Sch. B1 para. 53(2) 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(10)(b); 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. C1392Sch. B1 para. 50-58 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))
  2. C1393Sch. B1 para. 53 applied (with modifications) (8.7.2021) by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), regs. 2, 37 (with regs. 5, 38(6)) (as amended (4.1.2024) by S.I. 2023/1399, regs. 1(2), 4, 11, 13)
  3. C1394Sch. B1 para. 53(2) modified (E.W.) (31.1.2019) by The Further Education Bodies (Insolvency) Regulations 2019 (S.I. 2019/138), regs. 1(1), 28 (with regs. 1(2), 3(a)(ii))