SCHEDULE B1 ADMINISTRATION
76(1)The appointment of an administrator shall cease to have effect at the end of the period of one year beginning with the date on which it takes effect.
(2)But—
(a)on the application of an administrator the court may by order extend his term of office for a specified period, and
(b)an administrator’s term of office may be extended for a specified period not exceeding [F1361 one yearF1361] by consent.
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(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 ActThe ordinary one-year limit on an administrator’s appointment is not a complete code governing cessation. It is qualified by the specific conversion provisions where a notice has been duly filed (see paras [56]–[64]). The express provision for extending an appointment is not exhaustive because paragraph 76 does not govern every means by which an appointment may cease or continue (see paras [55]; [59]–[60]).
The court interpreted its discretion as requiring consideration of creditors’ interests as a whole and all the circumstances, including the continuing achievability of the administration’s purpose, prejudice, creditor views, distribution prospects, and the comparative disadvantages of liquidation. The discretion was exercised to grant a five-year extension. (see paras [25]–[33]) The court treated paragraph 76(2)(b), together with paragraph 78(4)(a), as restricting a consensual extension of an administrator’s term to one extension of up to one year. A further extension therefore required a court application. (see para [23])
The original administration appointment ended after one year unless extended by creditor consent or court order. The provision governed both the earlier consensual extension and the application for a further extension. (see paras [7], [10])
1 more judgment, and what each says about Schedule B1, paragraph 76, are in the case-law panel in the full Act.