• The Official Receiver in Insolvency
    Insolvency • Bankruptcy

Administration

What is it?

This is an alternative to liquidation where an Administrator is appointed to run the company. The company would be maintained (for a period of one(1) year with a possibility of extension by Court) or sold as a going concern so as to enhance value for the benefit of its creditors. An administrator is appointed either by the court, directors/members of the company or creditors and by a holder of a qualifying floating charge. During the period of administration, there is a moratorium on all proceedings against the company.

Where an application for an order for Administration against a company is presented to the Official Receiver the following actions shall be undertaken:

  1. State Counsel will go through the application.
  2. If the application is properly drawn, approve the application and indicating the amount to be paid by the petitioner
  3. Direct the petitioner to make payment of statutory fees at the BRS accounts office.
  4. State Counsel generate a Certificate of Compliance
  5. Open a file.
  6. Where the Court appoints the Official Receiver as administrator or interim administrator.
    1. Take over the affairs of the company
    2. Investigate the affairs of the company.
    3. Develop a proposal for continuity of the company
    4. Convene a creditors’ meeting.
    5. Make periodic reports with regards to the company
    6. Oversee implementation of the proposal
    7. Report to the court on the outcome of the court.
  7. Where the proposal is approved present it to Court for adoption.
  8. Where the Official Receiver is Confirmed as the supervisor, oversee the implementation of the proposal.

 

Last updated 22nd November 2019

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