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Co-operation with the administrator

Whilst the everyday operational function of the director is suspended once an administrator is appointed, directors still remain in office and have statutory duties to fulfil.

The primary function of former directors is one of co-operation with the administrator, who is an officer of the court.

  • section 234 of the Insolvency Act 1986 (“the Act”), the court has the power to order anyone who has property, books, papers or records in their possession or control, to which the company appears to be entitled, to deliver them up to the administrator;
  • section 235 of the Act imposes a positive obligation on directors (and others) to co-operate with the administrator;
  • the administrator may also apply to the court under section 236 of the Act to summons a director (and others) to appear in court to answer any inquiries into the company’s dealings or to produce property of the company. Failure to co-operate may result in a warrant for custody and may also result in daily fines.

For administration order or company rescue advice of any type, please contact our expert insolvency and restructuring team at Francis Wilks & Jones. We are here to help you.

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