Insolvency Act 1986, section 23

Statement of proposals

Part II Administration Orders

(1)Where an administration order has been made, the administrator shall, within 3 months (or such longer period as the court may allow) after the making of the order—

(a)send to the registrar of companies and (so far as he is aware of their addresses) to all creditors a statement of his proposals for achieving the purpose or purposes specified in the order, and

(b)lay a copy of the statement before a meeting of the company’s creditors summoned for the purpose on not less than 14 days’ notice.

(2)The administrator shall also, within 3 months (or such longer period as the court may allow) after the making of the order, either—

(a)send a copy of the statement (so far as he is aware of their addresses) to all members of the company, or

(b)publish in the prescribed manner a notice stating an address to which members of the company should write for copies of the statement to be sent to them free of charge.

(3)If the administrator without reasonable excuse fails to comply with this section, he is liable to a fine and, for continued contravention, to a daily default fine.

Definitions used in section 23 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 23 4

Lune Metal Products Ltd v Getliffe & Ors

[2006] EWCA Civ 1720 · 14 December 2006

The judgment refers to creditor approval of administration proposals under sections 23 and 24, without giving a separate construction of section 23. (see [14])

Royle & Ors v Burger King Ltd & Ors

[2005] EWCA Civ 1803 · 20 December 2005

The court relied on the creditors’ meeting and substantial creditor approval of the proposed compromise as part of the undisputed factual context negating the alleged conspiratorial inference. (see paras [23], [34])

Fashoff (UK) Ltd (t/a Moschino Forall Confezioni Spa) v Linton & Anor

[2008] EWHC 537 (Ch) · 19 March 2008

Section 23 was referred to in explaining the administrator’s duty to send proposals to creditors and convene a creditors’ meeting. (see para [69])

What each judgment says about section 23 is in the case-law panel in the full Act.