PART 2Restrictions on disposal of property by administrators

CHAPTER 1GENERAL

Conditions and requirements that apply in respect of a substantial disposal by the administrator3

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 persons5, during the period of 8 weeks beginning with the day on which the company enters administration6, 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.