Administration

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  • Created by: Lucy
  • Created on: 23-07-15 08:50
What is the administration order method used to do ?
protect a company experiencing short or medium term financial problems from its creditors.
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What is the aim of administration order ?
save the company or get a better deal for all creditors.
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Who may apply to the courts for an administration order ?
Company, via majority of shareholders, the directors, a creditor or a combination of them
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Can individual shareholders make an application for an administration order ?
NO
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What must courts be satisfied about before allowing an administration order ?
administration has a chance
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What must an administrator be qualified as ?
insolvency practitioner
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Who's the administrator an agent of ?
the company
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Whos duties does the administrator take on ?
Directors powers and duties
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Who does the administrator owe equitable fiduciary duty to ?
company
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Within how many days must the administrator give notice of appointment to company, creditors and Registrar of Companies ?
7 days
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What documents must state the name of the administrator ?
All Business documents
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How many days do directors, or others have to produce a statement of affairs ?
11 days
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Within how many weeks must the proposal be sent to members, creditors and Registrar ?
Within 8 weeks of appointment
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What can the proposal not do ?
Affect right of secured creditor to enforce security, or favour one secured creditor over another
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Within how many weeks must the administrator call creditors meeting ?
10 weeks of appointment, creditors accept or reject plan
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What happens if administrator and creditors can not agree on a plan ?
the courts can do as it sees fit.
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How does administration end ?
Successful completion, court order, automatically 12 months after appointment, unless court extend.
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Other cards in this set

Card 2

Front

save the company or get a better deal for all creditors.

Back

What is the aim of administration order ?

Card 3

Front

Company, via majority of shareholders, the directors, a creditor or a combination of them

Back

Preview of the back of card 3

Card 4

Front

NO

Back

Preview of the back of card 4

Card 5

Front

administration has a chance

Back

Preview of the back of card 5
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