Insolvency Act 1986, Schedule B1, paragraph 70

SCHEDULE B1 ADMINISTRATION

70(1)The administrator of a company may dispose of or take action relating to property which is subject to a floating charge as if it were not subject to the charge.

(2)Where property is disposed of in reliance on sub-paragraph (1) the holder of the floating charge shall have the same priority in respect of acquired property as he had in respect of the property disposed of.

(3) In sub-paragraph (2) “acquired property” means property of the company which directly or indirectly represents the property disposed of.

Definitions used in Schedule B1, paragraph 70 4

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
floating charge

“floating charge” means a charge which is a floating charge on its creation,

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

Cases considering Schedule B1, paragraph 70 7

Orthios Eco Parks (Anglesey) Limited, Re

[2024] EWHC 3047 (Ch) · 28 November 2024

Confirms that an administrator may deal with floating-charge property as if it were not subject to the charge, with remuneration remaining within the statutory administration expense regime. (see para [44])

Cross Transport Ltd (In Administration), Re

[2026] EWHC 1636 (Ch) · 30 June 2026Limits

Used in identifying floating-charge security whose priority is subordinate to the paragraph 64A payment obligation. (see paras [1(3)(a)]; [21]; [23(xiii)])

Laurence Pagden & Anor v Craig Andrew Ridgley

[2025] EWHC 2674 (Ch) · 17 October 2025

Provides an administrator with a power of sale in relation to floating-charge assets comparable to the court’s paragraph 71 power for fixed-charge assets. The comparison supports the distinction between floating- and fixed-charge assets. (see para [50])

What each judgment says about Schedule B1, paragraph 70 is in the case-law panel in the full Act.

Amendments and notes

5 notes from legislation.gov.uk

Modifications

  1. C1410Sch. B1 paras. 59-75 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), 19-25 (with reg. 64)
  2. C1438Sch. B1 para. 70 excluded (26.12.2003) by The Financial Collateral Arrangements (No.2) Regulations 2003 (S.I. 2003/3226), reg. 8(1)(b)
  3. C1439Sch. B1 para. 70 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
  4. C1440Sch. B1 paras. 70-79 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)
  5. C1441Sch. B1 para. 70 applied (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)