{
  "url": "https://openlegislation.uk/insolvency-act-1986/schedule-B1/paragraph-98",
  "json_url": "https://openlegislation.uk/insolvency-act-1986/schedule-B1/paragraph-98.json",
  "legislation": "ukpga/1986/45",
  "legislation_title": "Insolvency Act 1986",
  "legislation_url": "https://openlegislation.uk/insolvency-act-1986",
  "path": "schedule/B1/paragraph/98",
  "kind": "paragraph",
  "number": "98",
  "heading": "Vacation of office: discharge from liability",
  "text": "(1) Where a person ceases to be the administrator of a company (whether because he vacates office by reason of resignation, death or otherwise, because he is removed from office or because his appointment ceases to have effect) he is discharged from liability in respect of any action of his as administrator.\n(2) The discharge provided by sub-paragraph (1) takes effect—\n(a) in the case of an administrator who dies, on the filing with the court of notice of his death,\n(b) in the case of an administrator appointed under paragraph 14 or 22 who has not made a statement under paragraph 52(1)(b), at a time appointed by resolution of the creditors’ committee or, if there is no committee, by decision of the creditors,\n(ba) in the case of an administrator appointed under paragraph 14 or 22 who has made a statement under paragraph 52(1)(b), at a time decided by the relevant creditors, or\n(c) in any case, at a time specified by the court.\n(3) For the purposes of sub-paragraph (2)(ba), the “relevant creditors” of a company are—\n(a) each secured creditor of the company, or\n(b) if the administrator has made a distribution to preferential creditors or thinks that a distribution may be made to preferential creditors—\n(i) each secured creditor of the company, and\n(ii) the preferential creditors of the company.\n(3A) In a case where the administrator is removed from office, a decision of the creditors for the purposes of sub-paragraph (2)(b), or of the preferential creditors for the purposes of sub-paragraph (2)(ba), must be made by a qualifying decision procedure.\n(4) Discharge—\n(a) applies to liability accrued before the discharge takes effect, and\n(b) does not prevent the exercise of the court’s powers under paragraph 75.",
  "extent": "E+W+S",
  "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": "F",
      "label": "F2",
      "text": "Words in Sch. B1 para. 98(2)(b) inserted (1.10.2015) by Deregulation Act 2015 (c. 20), s. 115(7), Sch. 6 para. 7(2); S.I. 2015/1732, art. 2(e)(ii)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Word in Sch. B1 para. 98(2)(b) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 10(36); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Sch. B1 para. 98(2)(ba) inserted (1.10.2015) by Deregulation Act 2015 (c. 20), s. 115(7), Sch. 6 para. 7(3); S.I. 2015/1732, art. 2(e)(ii)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in Sch. B1 para. 98(3) substituted (1.10.2015) by Deregulation Act 2015 (c. 20), s. 115(7), Sch. 6 para. 7(4)(a); S.I. 2015/1732, art. 2(e)(ii)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Sch. B1 para. 98(3)(b)(ii) substituted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 10(37); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Sch. B1 para. 98(3A) inserted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force, 6.4.2019 for S. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 10(38); S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3); S.I. 2019/816, reg. 4(c) (with reg. 5)"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "Sch. B1 para. 98 applied (with modifications) (17.2.2009 for certain purposes, otherwise 21.2.2009) by Banking Act 2009 (c. 1), ss. 145, 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch. para. 3 (as amended (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5))"
    },
    {
      "type": "C",
      "label": "C2",
      "text": "Sch. B1 paras. 98-107 modified (5.7.2018) by Housing and Planning Act 2016 (c. 22), s. 216(3), Sch. 5 Pts. 1, 2; S.I. 2018/805, reg. 3(b)"
    },
    {
      "type": "C",
      "label": "C3",
      "text": "Sch. B1 para. 98 applied (with modifications) (8.7.2021) by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), regs. 2, 37 (with reg. 5) (as amended (4.1.2024) by S.I. 2023/1399, regs. 1(2), 4, 11)"
    },
    {
      "type": "C",
      "label": "C4",
      "text": "Sch. B1 paras. 98-104 applied (with modifications) (E.W.) (15.3.2024) by The Water Industry (Special Administration) Regulations 2024 (S.I. 2024/205), regs. 2(2), 5(1), 34-37 (with reg. 64)"
    },
    {
      "type": "C",
      "label": "C5",
      "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/98",
    "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."
}