What are the duties of an administraror when appointed by a holder of a floating charge?

Question

What are the duties of an administraror when appointed by a holder of a floating charge?

Answer 1

An administrator is appointed to manage a company’s affairs, business and property for the benefit of the creditors. The person appointed must be an insolvency practitioner and has the status of an officer of the court (whether or not he or she is appointed by the court).

The objective of administration is to:

*rescue a company as a going concern;



*achieve a better price for the company’s assets or otherwise realise their value more favourably for the creditors as a whole than would be likely if the company were wound up (without first being in administration); or

*in certain circumstances, realise the value of property in order to make a distribution to one or more preferential creditors.