Insolvency Administrator - Everything You Need To Know

The Insolvency Act 1986 gives an Insolvency Administrator legal rights to be a very powerful animal.

An insolvency administrator has the power to “do anything necessary or expedient for the management of the affairs, business and property of the company” and may “remove directors” and “appoint directors”.

In this Insolvency Administrator guide, you will learn all the legal rights and powers the administrators have in April 2024.

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Table of Content

1 What powers are given to an Insolvency Administrator by law?
2 What can an Insolvency Administrator do?
3 Why Are Insolvency Administrators Used?
4 All UK Insolvency Practitioners

What powers are given to an Insolvency Administrator by law?

An insolvency administrator legal source of the powers are set out in Schedules 1 and B1 of the Insolvency Act 1986.

Schedule 1 to The Insolvency Act 1986 lists 23 “specific powers” of an insolvency Administrator appointed under The Insolvency Act 1986
Schedule B1 of The Insolvency Act 1986 defines an Administrator’s “General Powers” at Paragraph 59 of that Schedule. Under this Paragraph, an Insolvency Administrator has the power to “do anything necessary or expedient for the management of the affairs, business and property of the company” and may “remove directors” and “appoint directors”.

What can an Insolvency Administrator do?

A corporate insolvency administrator has the legal rights to:

Remove directors, managers and employees from struggling companies
Close down businesses
Sell the business of the company
Propose re-structuring proposals to creditors

Why Are Insolvency Administrators Used?

Insolvency Administrators are used to rescuing a struggling business or producing better results for creditors who are owed money.

The corporate insolvency Administrator’s will try to re-organise the affairs of a UK company to survive.

In doing so the administrator can dismiss directors or staff who they feel are not providing value to the survival of the company.

Freezing creditors interest rates and negotiating better repayment plans are high up on the list.

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All UK Insolvency Practitioners

Here is a full list of Insolvency Practitioners in the UK: