Appointing an administrator

This draft chapter proposes a procedure through which an administrator would be appointed. It highlights in detail how the procedure would work, and predicts who would benefit from it. It proposes that powers similar to the ones give to a receiver appointed under a floating charge should be given to an administrator.

The power to appoint an administrator should be vested in the courts.

There should also be an unfettered right for the directors to apply to appoint an administrator. Th evidence for an application is also discussed. It emphasises that the powers of directors shall not cease upon the appointment of an administrator.

An administrator would not continue if the assets were to go into liquidation, or if the court orders that they should not continue.

On pages 12-21, you could find the comments made about the first draft by various persons .

On page 22, you will find the second draft of the chapter.

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