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Water Industry Act 1991

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23 Meaning and effect of special administration order.E+W

(1)A special administration order is an order of the High Court made in accordance with section 24 or 25 below in relation to a company holding an appointment under Chapter I of this Part [F1or which is a qualifying licensed water supplier] and directing that, during the period for which the order is in force, the affairs, business and property of the company shall be managed, by a person appointed by the High Court—

(a)for the achievement of the purposes of such an order; and

(b)in a manner which protects the respective interests of the members and creditors of the company.

(2)The purposes of a special administration order made in relation to any company [F2holding an appointment under Chapter 1 of this Part] shall be-

(a)the transfer to another company, or (as respects different parts of the area to which the company’s appointment relates, or different parts of its undertaking) to two or more different companies, as a going concern, of so much of the company’s undertaking as it is necessary to transfer in order to ensure that the functions which have been vested in the company by virtue of its appointment may be properly carried out; and

(b)the carrying out of those functions pending the making of the transfer and the vesting of those functions in the other company or companies (whether by virtue of the transfer or of an appointment or variation which replaces the former company as a relevant undertaker).

[F3(2A)The purposes of a special administration order made in relation to any company which is a qualifying licensed water supplier shall be—

(a)the transfer to another company or companies, as a going concern, of so much of the company’s undertaking as it is necessary to transfer in order to ensure that activities relating to the introduction or introductions of water mentioned in subsection (6)(b) below may be properly carried on; and

(b)the carrying on of those activities pending the making of the transfer.]

(3)Schedule 3 to this Act shall have effect for applying provisions of the M1Insolvency Act 1986 where a special administration order is made.

(4)Schedule 2 to this Act shall have effect for enabling provision to be made with respect to cases in which

[F4(a)a company is replaced by another as a relevant undertaker without an appointment or variation under Chapter 1 of this Part; or

(b)a company carries on activities relating to the introduction or introductions of water mentioned in subsection (6)(b) below formerly carried on by another company,

in pursuance of a special administration order.]

(5)In this section “business” and “property” have the same meanings as in the M2Insolvency Act 1986.

[F5(6)For the purposes of this section, sections 24 to 26 below and Schedule 2 to this Act, a licensed water supplier is a qualifying licensed water supplier if—

(a)it is the holder of a combined licence (within the meaning of Chapter 1A of this Part); and

(b)the introduction of water by it which is permitted under section 66B or 66C below is designated as a strategic supply under section 66G below or the introductions of water by it which are so permitted are designated as a collective strategic supply under section 66H below.]

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