Insolvency Act 1986, section 140

Appointment by the court following administration or voluntary arrangement

Part IV Winding Up of Companies Registered under the Companies Acts

[F325 (1)Where a winding-up order is made immediately upon the appointment of an administrator ceasing to have effect, the court may appoint as liquidator of the company the person whose appointment as administrator has ceased to have effect.F325]

(2)Where a winding-up order is made at a time when there is a supervisor of a voluntary arrangement approved in relation to the company under Part I, the court may appoint as liquidator of the company the person who is the supervisor at the time when the winding-up order is made.

(3)Where the court makes an appointment under this section, the official receiver does not become the liquidator as otherwise provided by section 136(2), and [F326section 136(5)(a) and (b) does not apply.F326]

Definitions used in section 140 2

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
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

Cases considering section 140 6

Angel Group Ltd & Ors, Re.

[2015] EWHC 3624 (Ch) · 3 December 2015

Applies the power to appoint as liquidator the person whose appointment as administrator ceases when a winding-up order is made immediately thereafter. This enabled the four proposed practitioners to become liquidators without an intervening Official Receiver appointment (see paras [21]-[25]).

In the Matter of Angelic Interiors Limited (in administration)

[2022] EWHC 2974 (Ch) · 29 November 2022

The provision was relied upon by the Quantuma Administrators as a possible basis for their appointment as liquidators if the company were wound up. The court ultimately appointed both pairs of administrators jointly. (see para [8])

In the matter of MSOLD1 Limited (in administration)

[2022] EWHC 3015 (Ch) · 18 November 2022

The court appointed the administrators as joint liquidators immediately after the compulsory winding-up order, pursuant to section 140(1) (see paras [1], [55]).

What each judgment says about section 140 is in the case-law panel in the full Act.

Amendments and notes

5 notes from legislation.gov.uk

Amendments

  1. F325S. 140(1) substituted (15.9.2003) by 2002 c. 40, ss. 248(3), 279, Sch. 17 para. 17 (with s. 249(1)-(3)(6)); S.I. 2003/2093, art. 2(1), Sch. 1 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))
  2. F326Words in s. 140(3) 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. 35; 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. C393Ss. 138-140 applied (with modifications) (4.1.2024) by S.I. 2021/716, Sch. 1 para. 3 (as amended by The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 (S.I. 2023/1399), regs. 1(2), 20)
  2. C396S. 140 applied (with modifications) (1.12.1994) by S.I. 1994/2421, art. 8(3)(9), Sch. 4 Pt. II para. 15 (as amended (1.7.2005) by S.I. 2005/1516, art. 9(3))
  3. C397S. 140 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) (with reg. 64)