Insolvency Act 1986, section 388

Meaning of “act as insolvency practitioner”

Part XIII Insolvency Practitioners and their Qualification

(1)A person acts as an insolvency practitioner in relation to a company by acting—

(a)as its liquidator, provisional liquidator, administrator[F1054 , administrative receiver or monitorF1054] , or

[F1055 (b)where a voluntary arrangement in relation to the company is proposed or approved under Part I, as nominee or supervisorF1055]

(2)A person acts as an insolvency practitioner in relation to an individual by acting—

(a)as his trustee in bankruptcy or interim receiver of his property or as [F1056trustee (or interim trustee)F1056] in the sequestration of his estate; or

(b)F1057as trustee under a deed which is ..., in Scotland, a trust deed for his creditor; or

[F1058 (c)where a voluntary arrangement in relation to the individual is proposed or approved under Part VIII, as nominee or supervisorF1058]

(d)in the case of a deceased individual to the administration of whose estate this section applies by virtue of an order under section 421 (application of provisions of this Act to insolvent estates of deceased persons), as administrator of that estate.

[F1059 (2A)A person acts as an insolvency practitioner in relation to an insolvent partnership by acting—

(a)as its liquidator, provisional liquidator or administrator, or

(b)as trustee of the partnership under article 11 of the Insolvent Partnerships Order 1994, or

[F1060 (c)where a voluntary arrangement in relation to the insolvent partnership is proposed or approved under Part I of the Act, as nominee or supervisor.F1060,F1059]]

[F1061 (2B)In relation to a voluntary arrangement proposed under Part I or VIII, a person acts as nominee if he performs any of the functions conferred on nominees under the Part in question.F1061]

(3)F1062References in this section to an individual include, except in so far as the context otherwise requires, references . . . to any debtor within the meaning of the Bankruptcy (Scotland) Act [F10632016F1063] .

(4)In this section—

  • “administrative receiver” has the meaning given by section 251 in Part VII;

  • [F1064 “company” means—

    (a)

    a company registered under the Companies Act 2006 in England and Wales or Scotland, or

    (b)

    a company that may be wound up under Part 5 of this Act (unregistered companies).F1064]

  • [F1065 “monitor” has the same meaning as in Part A1 (moratorium); F1065]

  • [F1066 “sequestration” means sequestration under the Bankruptcy (Scotland) Act 2016 F1066]

[F1067 (5)Nothing in this section applies to anything done by—

(a)the official receiver; or

(b)the Accountant in Bankruptcy (within the meaning of the Bankruptcy (Scotland) Act [F1068 2016F1068] ).F1067]

F1069(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Definitions used in section 388 3

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
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 debtor

(2) In Schedule 6 “the debtor” means the company or the individual concerned.

Defined in s.386(2) · see it in the full Act

Cases considering section 388 5

Secretary of State for Business and Trade v Simran Sahonta & Ors

[2025] EAT 166 · 10 November 2025Defines

The incorporated definition of insolvency practitioner includes a provisional liquidator. This supported the conclusion that the proceedings were under insolvency-practitioner supervision from the court appointment. (see paras [44]; [47])

Ward Brothers (Malton) Ltd v Middleton & Ors (Transfer of Undertakings : Insolvency)

[2013] UKEAT 249_13_1610 · 16 October 2013

Section 388(1) supported the conclusion that a person acts as an insolvency practitioner in relation to a company only when acting in a listed appointed role. It confirmed that a qualified adviser who has not been appointed is not acting in that capacity. (see paras [13]-[14]; [23])

Candey Ltd v Crumpler & Anor

[2020] EWCA Civ 26 · 23 January 2020Defines

Defines the British insolvency office-holder against whom the foreign representative’s status was contrasted. (see para [18])

What each judgment says about section 388 is in the case-law panel in the full Act.

Amendments and notes

20 notes from legislation.gov.uk

Amendments

  1. F1054Words in s. 388(1)(a) substituted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 21(2) (with ss. 2(2), 5(2))
  2. F1055S. 388(1)(b) substituted (1.1.2003) by 2000 c. 39, s. 4(2)(a); S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)
  3. F1056Words in s. 388(2)(a) substituted (30.11.2016) by The Bankruptcy (Scotland) Act 2016 (Consequential Provisions and Modifications) Order 2016 (S.I. 2016/1034), art. 1, Sch. 1 para. 4(6)(a)
  4. F1057Words in s. 388(2)(b) omitted (1.10.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(7), Sch. 6 para. 2(11)(f) (with Sch. 6 para. 3); S.I. 2015/1732, art. 2(e)(i)
  5. F1058S. 388(2)(c) substituted (1.1.2003) by 2000 c. 39, s. 4(2)(b); S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)
  6. F1059S. 388(2A) inserted (1.12.1994) by S.I. 1994/2421, arts. 1(2), 15(1)
  7. F1060S. 388(2A)(c) substituted (1.1.2003) by S.I. 2002/2708, art. 3 (with art. 11(1)(3))
  8. F1061S. 388(2B) inserted (1.1.2003) by 2000 c. 39, s. 4(2)(c); S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)
  9. F1062Words in s. 388(3) omitted (1.12.1994) by virtue of S.I. 1994/2421, art. 15(2)
  10. F1063Word in s. 388(3) substituted (30.11.2016) by The Bankruptcy (Scotland) Act 2016 (Consequential Provisions and Modifications) Order 2016 (S.I. 2016/1034), art. 1, Sch. 1 para. 4(6)(b)
  11. F1064S. 388(4): definition substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009, (S.I. 2009/1941) arts. 2(1), 8, {Sch. 1 para. 78(2)} (with art. 10, Sch. 1 para. 84)
  12. F1065Words in s. 388(4) inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 3 para. 21(3) (with ss. 2(2), 5(2))
  13. F1066Words in s. 388(4) substituted (30.11.2016) by The Bankruptcy (Scotland) Act 2016 (Consequential Provisions and Modifications) Order 2016 (S.I. 2016/1034), art. 1, Sch. 1 para. 4(6)(c)
  14. F1067S. 388(5) substituted (1.4.1993) by 1993 c. 6, s. 11(1) (with s. 12(6)); S.I. 1993/438, art. 3 (with arts. 4, 5)
  15. F1068Word in s. 388(5)(b) substituted (30.11.2016) by The Bankruptcy (Scotland) Act 2016 (Consequential Provisions and Modifications) Order 2016 (S.I. 2016/1034), art. 1, Sch. 1 para. 4(6)(d)
  16. F1069S. 388(6) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 36 (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

Modifications

  1. C1145S. 388 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. II
  2. C1146S. 388 applied (with modifications) (temp. for a period of 12 months beginning with 22.3.1990: S.I. 1990/675; and for a further period of 12 months beginning with 22.3.1991: S.I. 1991/549, 779) by Prevention of Terrorism (Temporary Provisions) Act 1989 (c. 4, SIF 39:2), s. 13(8), Sch. 4 para. 33(4)(a)
  3. C1147S. 388 excluded (4.4.2006) by The Cross-Border Insolvency Regulations 2006 (S.I. 2006/1030), reg. 8
  4. C1148S. 388 applied (with modifications) (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), Pt. 3 reg. 1, Sch. 2 paras. 3, 5 Table (with reg. 24)