SCHEDULE B1 ADMINISTRATION
64 (1) A company in administration or an officer of a company in administration may not exercise a management power without the consent of the administrator.
(2) For the purpose of sub-paragraph (1)—
(a) “management power” means a power which could be exercised so as to interfere with the exercise of the administrator’s powers,
(b) it is immaterial whether the power is conferred by an enactment or an instrument, and
(c) consent may be general or specific.
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 ActThe provision prevents a company in administration or its officers from exercising management powers without the administrator’s consent. It therefore distinguishes the administrator from the company’s officers (see paras [26]-[27]).
The court applied paragraph 64 in confirming that the company remained outside the control of its directors during the administration. Maintaining that disability was one reason for keeping the administration in place, but it also reinforced the administrators’ continuing responsibilities (see para [19]).
Requires company officers to obtain the administrator’s consent before exercising a management power. The directors’ proposed distribution was treated as a management matter for which consent could properly be given. (see paras [16], [23]-[24], [37], [46]-[48]) Prohibits a company in administration or its officer from exercising a management power without the administrator’s consent. The court treated the directors’ proposed action as requiring, and capable of receiving, that consent. (see paras [16], [37], [46]) Defines the management-power restriction for paragraph 64 purposes. The court concluded that the statutory definition was sufficiently broad to encompass the proposed distribution. (see paras [16], [23]-[24], [37])
What each judgment says about Schedule B1, paragraph 64 is in the case-law panel in the full Act.