Insolvency Act 1986, Schedule B1, paragraph 55

SCHEDULE B1 ADMINISTRATION

55[F1327 (1)This paragraph applies where an administrator—

(a)reports to the court under paragraph 53 that a company's creditors have failed to approve the administrator's proposals, or

(b)reports to the court under paragraph 54 that a company's creditors have failed to approve a revision of the administrator's proposals.F1327]

(2)The court may—

(a)provide that the appointment of an administrator shall cease to have effect from a specified time;

(b)adjourn the hearing conditionally or unconditionally;

(c)make an interim order;

(d)make an order on a petition for winding up suspended by virtue of paragraph 40(1)(b);

(e)make any other order (including an order making consequential provision) that the court thinks appropriate.

Definitions used in Schedule B1, paragraph 55 3

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

Cases considering Schedule B1, paragraph 55 6

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 applied paragraph 55(2)(e) to order the company’s compulsory winding up because continued administration lacked rational justification, creditor support, and any reasonable prospect of approval. (see paras [3]; [45]-[46])

Wormleighton & Anor v Salamander Invest A/S & Anor

[2020] EWHC 2369 (Ch) · 3 September 2020Interprets

The court confirmed that administrators must report to the court and apply for directions when proposals are rejected. The requirement is mandatory (see paras [9]-[12]). The court construed paragraph 55(2) as conferring wide discretionary powers, including power to authorise rejected proposals where a purpose has a real prospect of achievement and, under paragraph 55(2)(e), to make any other appropriate order (see paras [11]-[12], [23]-[27], [134]-[145]). The court held that the power to make any other appropriate order includes power, in an exceptional case, to wind up the company without a petition (see paras [137]-[145]).

Lavin & Ors v Swindell

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

The court applied the provision to identify the circumstance in which the initial creditors’ meeting had failed to approve the administrator’s proposals and paragraph 55 was engaged. (see paras [56]; [69]) The court interpreted paragraph 55(2) as requiring an application and hearing after rejection of the proposals, and as conferring wide powers including termination, directions and consequential orders. It relied on paragraph 55(2)(a) and (e) to terminate the administration and make a compulsory winding-up order. (see paras [56]; [63]-[75]; [82]-[84])

What each judgment says about Schedule B1, paragraph 55 is in the case-law panel in the full Act.

Amendments and notes

3 notes from legislation.gov.uk

Amendments

  1. F1327Sch. B1 para. 55(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(17); 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. C1400Sch. 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. C1401Sch. B1 para. 55 applied (with modifications) (8.7.2021) by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), regs. 2, 37, 41 (with regs. 5, 38(6)) (as amended (4.1.2024) by S.I. 2023/1399, regs. 1(2), 4, 11, 13)