Valid from 15/09/2003
98(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.
(2)The discharge provided by sub-paragraph (1) takes effect—
(a)in the case of an administrator who dies, on the filing with the court of notice of his death,
(b)in the case of an administrator appointed under paragraph 14 or 22, at a time appointed by resolution of the creditors’ committee or, if there is no committee, by resolution of the creditors, or
(c)in any case, at a time specified by the court.
(3)For the purpose of the application of sub-paragraph (2)(b) in a case where the administrator has made a statement under paragraph 52(1)(b), a resolution shall be taken as passed if (and only if) passed with the approval of—
(a)each secured creditor of the company, or
(b)if the administrator has made a distribution to preferential creditors or thinks that a distribution may be made to preferential creditors—
(i)each secured creditor of the company, and
(ii)preferential creditors whose debts amount to more than 50% of the preferential debts of the company, disregarding debts of any creditor who does not respond to an invitation to give or withhold approval.
(4)Discharge—
(a)applies to liability accrued before the discharge takes effect, and
(b)does not prevent the exercise of the court’s powers under paragraph 75.]
Modifications etc. (not altering text)
C4Sch. 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))