How does a company enter administration?
A company enters administration when the appointment of an administrator takes effect. An administrator may be appointed by: an administration order made by the court; the holder of a floating charge; or the company or its directors. The administrator must perform his or her functions as quickly and efficiently as reasonably practicable. 3. What are the effects on a company of being in administration? When a company enters administration: any pending winding-up petitions will be dismissed or suspended; there will be moratorium on insolvency and on other legal proceedings; if an administrative receiver has been appointed, he or she must vacate office; if a receiver of part of the company’s property has been appointed, he or she must vacate office(if the administrator requires this). 4. Who must be told that a company is in administration? As soon as reasonably practicable, an administrator must send a notice of his or her appointment to the company and each of its creditors and publish
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