Rule 2.1 Insolvency Rules 1986
To become more expert in interpreting the Insolvency Rules 1986 as they apply to Administrations it is important to first examine this Insolvency Rules 1986 index to establish which Rules apply - The Rules can differ if the Administration was sought by the directors as opposed to a Floating charge holder or if the order was made by an application to Court. The actual wording of Rule 2.1 of The Insolvency Rules 1986 is shown below in bold.
Part 2 ADMINISTRATION PROCEDURE - Part 1 PRELIMINARY - Rule 2.1 - Affidavit to support petition
2.1.— Introductory and interpretation
(1) In this Part–
(a) Chapter 2 applies in relation to the appointment of an administrator by the court;
(b) Chapter 3 applies in relation to the appointment of an administrator by the holder of a qualifying floating charge under paragraph 14;
(c) Chapter 4 applies in relation to the appointment of an administrator by the company or the directors under paragraph 22;
(d) The following Chapters apply in all the cases mentioned in sub-paragraphs (a)– (c) above:
— Chapter 5: Process of administration;
— Chapter 6: Meetings and reports;
— Chapter 7: The creditors' committee;
— Chapter 8: Disposal of charged property;
— Chapter 9: Expenses of the administration;
— Chapter 10: Distributions to creditors;
— Chapter 11: The administrator;
— Chapter 12: Ending administration;
— Chapter 13: Replacing administrator;
— Chapter 14: EC Regulation — conversion of administration into winding up;
— Chapter 15: EC Regulation — member State liquidator.
(2) In this Part of these Rules a reference to a numbered paragraph shall, unless otherwise stated, be to the paragraph so numbered in Schedule B1 to the Act.
So the starting point before considering any insolvency rule is whether or not you have selected the correct Rule by identifying who is putting the Company into Administration in the first instance. The Chapters referred to above are,
- Chapter 2 -Appointment of an administrator by the court
- Chapter 3 - Appointment of an administrator by the holder of a qualifying floating charge
- Chapter 4 - Appointment of an administrator by the company or the directors
There are however 15 "Chapters" in the Insolvency Rules 1986 applying to Company Voluntary Arrangements and these Chapters incorporate Rules 2.1 to Rule 1.58 - With 58 Administration Rules you can appreciate why the index is so important.
This index to the Administration Insolvency Rules is therefore a starting point for identifying the applicable set of Rules. The individual 58 Administration Insolvency Rules are available via the index shown on the left hand side of this page.