How do you put a company into administration?
An application can be made to the court to place a company into administration, known as the in-court process. This application can be made by the creditors of a company, the directors of a company, the company itself or a combination of them all. A hearing date will be given and a hearing will take place. The court will then decide any one of its powers which is any one of the following:
- Make the administration order;
- Dismiss the application;
- Adjourn the hearing conditionally or unconditionally;
- Make an interim order;
- Treat the application as a winding-up petition and make any order which the court could make;
- Make any order that the court thinks appropriate.
A qualifying floating charge holder can put a company into administration and a company or its directors can put a company into administration. This is known as the out of court route. Under the new Insolvency (England and Wales) Rules 2016 there is no prescribed form which must be used. Prior to these rules coming into force, the Insolvency Rules 1986, provided that certain forms must be used depending on who is placing the company into administration. Under the new rules, there is simply certain content which is required to be present within the relevant Notice of Appointment. At the time the relevant Notice of Appointment is sealed by the Court, the insolvency practitioner, as administrator is appointed over the company.
At Francis Wilks & Jones we have experts who deal with all types of company insolvency and are available to speak with you regarding all the options for a company in trouble. Please give one of our team a call on 020 7841 0390 who will be happy to talk through the options available to your company.