Insolvency Act 1986, Schedule B1, paragraph 83

SCHEDULE B1 ADMINISTRATION

83(1)This paragraph applies in England and Wales where the administrator of a company thinks—

(a)that the total amount which each secured creditor of the company is likely to receive has been paid to him or set aside for him, and

(b)that a distribution will be made to unsecured creditors of the company (if there are any) [F1370 which is not a distribution by virtue of section 176A(2)(a)F1370] .

(2)This paragraph applies in Scotland where the administrator of a company thinks—

(a)that each secured creditor of the company will receive payment in respect of his debt, and

(b)that a distribution will be made to unsecured creditors (if there are any) [F1371 which is not a distribution by virtue of section 176A(2)(a)F1371] .

(3)The administrator may send to the registrar of companies a notice that this paragraph applies.

(4)On receipt of a notice under sub-paragraph (3) the registrar shall register it.

(5)If an administrator sends a notice under sub-paragraph (3) he shall as soon as is reasonably practicable—

(a)file a copy of the notice with the court, and

(b)send a copy of the notice to each creditor [F1372 , other than an opted-out creditor,F1372] of whose claim and address he is aware.

(6)On the registration of a notice under sub-paragraph (3)—

(a)the appointment of an administrator in respect of the company shall cease to have effect, and

(b)the company shall be wound up as if a resolution for voluntary winding up under section 84 were passed on the day on which the notice is registered.

(7)The liquidator for the purposes of the winding up shall be—

(a)a person nominated by the creditors of the company in the prescribed manner and within the prescribed period, or

(b)if no person is nominated under paragraph (a), the administrator.

(8)In the application of Part IV to a winding up by virtue of this paragraph—

(a)section 85 shall not apply,

(b)section 86 shall apply as if the reference to the time of the passing of the resolution for voluntary winding up were a reference to the beginning of the date of registration of the notice under sub-paragraph (3),

(c)section 89 does not apply,

(d)sections F1373... 99 and 100 shall not apply,

(e)section 129 shall apply as if the reference to the time of the passing of the resolution for voluntary winding up were a reference to the beginning of the date of registration of the notice under sub-paragraph (3), and

(f)any creditors’ committee which is in existence immediately before the company ceases to be in administration shall continue in existence after that time as if appointed as a liquidation committee under section 101.

Definitions used in Schedule B1, paragraph 83 5

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
a resolution for voluntary winding up

(2) In this Act the expression “a resolution for voluntary winding up” means a resolution passed under either of the paragraphs of subsection (1).

Defined in s.84(2) · see it in the full Act
in administration

“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

Cases considering Schedule B1, paragraph 83 18

Cartwright & Anor v The Registrar of Companies

[2012] EWCA Civ 1159 · 24 August 2012Interprets

The provision creates a streamlined procedure for converting an administration into a creditors’ voluntary liquidation. Conversion occurs upon registration, and a duly filed notice impliedly extends an appointment which would otherwise expire through effluxion of time before registration (see paras [41]–[50]; [58]–[64]). The conversion procedure applies where secured creditors have been paid or provided for and a distribution will be made to unsecured creditors, if any. These conditions were satisfied (see paras [25]–[26]). The administrator may send the registrar notice that paragraph 83 applies. Its reference to the whole paragraph provided some support for giving the conversion provisions priority over inconsistent general provisions (see paras [26]; [63]). Receipt and registration are distinct events. Upon receipt, the registrar must perform the further act of registration before the notice takes effect (see paras [42]–[43]). The duty promptly to notify the court and creditors after sending the conversion notice informs them that the conversion process has begun. It does not establish that conversion occurs upon filing (see para [50]). Registration is the operative conversion event. The provision also impliedly extends an administrator’s appointment, where it would otherwise expire through effluxion of time after due filing, until registration (see paras [41]–[50]; [58]–[65]). The administrator’s appointment ceases upon registration. Until then, due filing impliedly extends an appointment which would otherwise expire through effluxion of time (see paras [45]; [56]–[64]). Upon registration, the company is wound up as if a voluntary winding-up resolution had been passed on that date. The liquidation therefore commenced on 4 February 2011 (see paras [27]; [65]).

Float Capital Limited, Re

[2026] EWHC 1891 (Ch) · 24 July 2026

Paragraph 83 provides the conversion from administration into creditors’ voluntary liquidation. The court applied the conversion to determine when the deeming provisions carried an administrator’s remuneration basis into the liquidation. (see paras [1]; [9]; [26])

Esken Limited (Overseas Company Number FC041629), Re

[2026] EWHC 495 (Ch) · 6 March 2026Interprets

Interprets paragraph 83 as permitting a company within the paragraph 111 definition to move from administration to creditors’ voluntary liquidation by registration of the administrator’s notice. (see paras [10]-[14], [21]) Confirms that registration of the notice ends the administration and causes the company to be wound up as if a resolution for voluntary winding up had been passed on the registration date. (see paras [11], [21], [24])

What each judgment says about Schedule B1, paragraph 83 is in the case-law panel in the full Act.

Amendments and notes

7 notes from legislation.gov.uk

Amendments

  1. F1370Words in Sch. B1 para. 83(1)(b) inserted (26.5.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 128(3), 164(3)(i)(ii)
  2. F1371Words in Sch. B1 para. 83(2)(b) inserted (26.5.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 128(3), 164(3)(i)(ii)
  3. F1372Words in Sch. B1 para. 83(5)(b) 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(31); 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)
  4. F1373Word in Sch. B1 para. 83(8)(d) omitted (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 virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 10(32); 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. C1458Sch. B1 paras. 83-91 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)
  2. C1459Sch. B1 paras. 83-91 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), 27-32 (with reg. 64)
  3. C1460Sch. B1 para. 83(5) modified (E.W.) (31.1.2019) by The Further Education Bodies (Insolvency) Regulations 2019 (S.I. 2019/138), regs. 1(1), 31 (with regs. 1(2), 3(a)(ii))