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Legal Education >> Academics >> Corporate Insolvency: Administration
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Message started by simba on Mar 25th, 2007 at 2:27pm

Title: Corporate Insolvency: Administration
Post by simba on Mar 25th, 2007 at 2:27pm
I have been informed that the present Government is promoting administration rather than receivership or administration, has anyone any authority for this?

Title: Re: Corporate Insolvency: Administration
Post by Norse_mann on Mar 25th, 2007 at 2:51pm
Simba

Have a look at s250 of the Enterprise Act 2002

Norse

Title: Re: Corporate Insolvency: Administration
Post by simba on Mar 25th, 2007 at 6:23pm
Thanks for that Norse Mann  :)

I'm a bit curious as to why the Government made that move? What are the aims of the Government in preventing holders of floating charges appointing administrative receivers? And why does the Government promote administration rather than receivership or liquidation? I have googled all sorts of phrases and also had a look on the Scottish Exec website, but can't seem to find anything?  :-/

Title: Re: Corporate Insolvency: Administration
Post by Norse_mann on Mar 25th, 2007 at 6:33pm
Simba

a small caveat; I have not studied ANY company law for a few years, but i dimly remember that the idea was that Administration is designed to try and keep the company running this being better for the economy, workforce, society in general rather than receviership which just led to the company falling and swelling the ranks of the good folks who just dont't want to work.

I am not sure but receivership may have been prejudicial to creditos other than the floating charge holder.

try this guidance notes to the act  http://www.opsi.gov.uk/acts/en2002/02en40-k.htm

and the precceding white paper http://www.insolvency.gov.uk/cwp/cm5234.pdf

p.s you might also want to look at Hansard for the debates precceding the act, but this can be very dull and tedious.


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