Regulation 3 Conditions and requirements that apply in respect of a substantial disposal by the administrator

(1)

An administrator must not make a substantial disposal unless either one of the following two conditions is met—

(a)

the approval of the company’s creditors for the making of that disposal has been obtained in accordance with regulation 4, or

(b)

a qualifying report in respect of the making of that disposal has been obtained.

(2)

Where the condition in paragraph (1)(b) is met and an administrator makes a substantial disposal the notification requirements in regulation 9 must be met.

(3)

For the purposes of these Regulations a “substantial disposal”—

(a)

means a disposal, hiring out or sale to one or more connected persons^f1, during the period of 8 weeks beginning with the day on which the company enters administration^f2, of what is, in the administrator’s opinion, all or a substantial part of the company’s business or assets, and

(b)

includes a disposal which is effected by a series of transactions.

Annotations

Footnotes

f1: “Connected person” is defined in paragraph 60(A)(3) of Schedule B1.
f2: “Enters administration” is defined in paragraph 1(2)(b) of Schedule B1.