{
  "url": "https://openlegislation.uk/insolvency-act-1986/schedule-B1/paragraph-3",
  "json_url": "https://openlegislation.uk/insolvency-act-1986/schedule-B1/paragraph-3.json",
  "legislation": "ukpga/1986/45",
  "legislation_title": "Insolvency Act 1986",
  "legislation_url": "https://openlegislation.uk/insolvency-act-1986",
  "path": "schedule/B1/paragraph/3",
  "kind": "paragraph",
  "number": "3",
  "heading": "Purpose of administration",
  "text": "(1) The administrator of a company must perform his functions with the objective of—\n(a) rescuing the company as a going concern, or\n(b) achieving a better result for the company’s creditors as a whole than would be likely if the company were wound up (without first being in administration), or\n(c) realising property in order to make a distribution to one or more secured or preferential creditors.\n(2) Subject to sub-paragraph (4), the administrator of a company must perform his functions in the interests of the company’s creditors as a whole.\n(3) The administrator must perform his functions with the objective specified in sub-paragraph (1)(a) unless he thinks either—\n(a) that it is not reasonably practicable to achieve that objective, or\n(b) that the objective specified in sub-paragraph (1)(b) would achieve a better result for the company’s creditors as a whole.\n(4) The administrator may perform his functions with the objective specified in sub-paragraph (1)(c) only if—\n(a) he thinks that it is not reasonably practicable to achieve either of the objectives specified in sub-paragraph (1)(a) and (b), and\n(b) he does not unnecessarily harm the interests of the creditors of the company as a whole.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. B1 inserted (15.9.2003) by 2002 c. 40, ss. 248(2), 279, Sch. 16 (with s. 249(1)-(3)(6)); S.I. 2003/2093, art. 2(1), Sch. 1 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "Sch. B1 excluded in part (E.W.) (15.3.2024) by The Water Industry (Special Administration) Regulations 2024 (S.I. 2024/205), regs. 2(2), 5(2) (with reg. 64)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1986/45/schedule/B1/paragraph/3",
    "retrieved_at": "2026-11-06T03:34:54.608720+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}