PART IICompany Insolvency Etc
CHAPTER IIIAdministration Orders
Making etc. of administration orders
27Power to make order
1
Subject to subsection (2) below, if the court—
a
is satisfied that a company is or is likely to becomeunable to pay its debts; and
b
considers that the making of an order under this section would be likely to achieve one or more of the purposes mentioned in subsection (3) below,
the court may make an administration order in relation to the company, that is to say, an order directing that, during the period for which the order is in force, the affairs, business and property of the company shall be managed by a person (to be known as " the administrator ") appointed for the purpose by the court; and such an order shall specify the purpose or purposes for whose achievement it is made.
2
An administration order shall not be made in relation to a company—
a
after the company has gone into liquidation;
b
where the company is an insurance company within the meaning of the [1982 c. 50.] Insurance Companies Act 1982 ; or
c
where the company is a recognised bank or licensed institution within the meaning of the [1979 c. 37.] Banking Act 1979 or an institution to which sections 16 and 18 of that Act apply as if it were a licensed institution.
3
The purposes referred to in subsection (1)(b) above are—
a
the survival of the company, and the whole or any part of its undertaking, as a going concern ;
b
the approval under section 23 above of a composition in satisfaction of the company's debts or a scheme of arrangement of its affairs ;
c
the sanctioning under section 425 of the 1985 Act of a compromise or arrangement between the company and any such persons as are mentioned in that section ; and
d
a more advantageous realisation of the company's assets than would be effected on a winding up.
4
Section 518 of the 1985 Act (definition of inability to pay debts) shall apply for the purposes of this section as it applies for the purposes of Chapter II of Part XX of that Act.