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What are the objectives of administration in the UK?

The administrator must first try to rescue the company as a going concern. If that is not reasonably practicable, the objective becomes a better result for creditors as a whole than a winding up, and only if neither is achievable may the administrator realise property to pay secured or preferential creditors. An administration lasts one year unless extended by creditor consent or by the court, and it brings an automatic moratorium on enforcement.

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Source

Source
Insolvency Act 1986, Schedule B1, paragraphs 3 and 76
Acts
Insolvency Act 1986
Area
Company, accounts and insolvency
Checked
2026-09-22
Insolvency Act 1986Open the official text ↗

Questions

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