Do directors have to co-operate with the administrator?
Co-operation with the administrator
The primary function is one of co-operation with the administrator, who is an officer of the court. Under s234 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. Furthermore, s235 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 s236 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 advice, please contact our administration order team at FWJ on 020 7841 0390.