A Guide to Administration

The Procedure

In the event of legal action being issued against the company, it is necessary to place the company into administration via an application to the court ('Administration Application'). The process involves the completion of a number of forms and an affidavit that is then filed in the court local to the company's registered office or in a District Registry of the High Court and a hearing will then be held anytime in the future, although it is likely to be within 2 weeks.

ICS will prepare the statutory form(s), board minutes, notice(s) of consent for the proposed administrator(s) and any other supporting documentation necessary to be lodged with the court to allow the company to enter administration. Where we believe it is necessary to instruct a solicitor to assist with the application we shall either instruct a firm of my choice direct or advise you which firm to instruct.

Where we deem it necessary we will also prepare a report to accompany the administration application to assist the presiding judge in understanding why administration appears to be appropriate in the circumstances. Please note this report is not a mandatory part of the administration application and therefore its preparation and inclusion is at our discretion. We will require your full co-operation in gathering information concerning the company's current and future financial position.

When the administration application is filed in court an interim moratorium comes into force protecting the company from any legal or other proceeding from being commenced or continued without the leave of the court. The directors are requested to advise a member of the team at ICS should they become aware of any creditor trying to commence or continue any action against the company.

Where there is a Qualifying Floating Chargeholder

Between the administration application being filed in court and the court hearing it is possible for any creditor of the company with a qualifying floating charge to appoint an administrator of their own choosing. Where this is a possibility you acknowledge that we have already discussed this with the director(s) of the company. The Administration Hearing

We will attend the hearing together with any other legal representatives we deem necessary, such as a solicitor as mentioned above or a barrister. It is possible for a number of people to appear at the hearing such as other directors, the petitioning creditor or a supervisor of an existing voluntary arrangement.

We will deal with any objections to the administration application either before or at the hearing. Please be advised that it is up to the presiding judge to make the Administration Order and if he is not satisfied that administration is the most appropriate course of action he may make any order that he thinks appropriate including winding up the company.

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