Re T&D Industries plc
Encyclopedia
Re T&D Industries plc [2000] BCC 956 is a UK insolvency law
case, concerning the policy of administration of a company in financial distress. It held that administrators have the clear power to deal with the company's property as is necessary if under the pressure of time before there is a creditors' meeting.
) wished to dispose of the company's assets before a creditors' meeting had taken place as required by the Insolvency Act 1986
s 24 (now Schedule B1, para 51). Section 17(2)(a) (now updated in schedule B1, para 1) contained the ambiguously worded provision that an administrator can manage the affairs, business and property of the company,
Counsel for the administrators argued that this should be taken, on a first interpretation, to mean that the administrator could do anything, unless it was prohibited under the administration order for their appointment. Failing that, a second interpretation was that any disposal of the company's assets could be made, so long as the administrator had authorised it.
UK insolvency law
United Kingdom insolvency law deals with the insolvency of firms and individuals in the United Kingdom. The important statutes are the Insolvency Act 1986, as amended by the Enterprise Act 2002, as well as the Company Director Disqualification Act 1986 and the Companies Act 2006.Insolvency is a...
case, concerning the policy of administration of a company in financial distress. It held that administrators have the clear power to deal with the company's property as is necessary if under the pressure of time before there is a creditors' meeting.
Facts
The two administrators of T&D Industries plc (from PWCPwC
PricewaterhouseCoopers is a global professional services firm headquartered in London, United Kingdom. It is the world's largest professional services firm measured by revenues and one of the "Big Four" accountancy firms....
) wished to dispose of the company's assets before a creditors' meeting had taken place as required by the Insolvency Act 1986
Insolvency Act 1986
The Insolvency Act 1986 is an Act of the Parliament of the United Kingdom that provides the legal platform for all matters relating to personal and corporate insolvency in the UK.-History:...
s 24 (now Schedule B1, para 51). Section 17(2)(a) (now updated in schedule B1, para 1) contained the ambiguously worded provision that an administrator can manage the affairs, business and property of the company,
Counsel for the administrators argued that this should be taken, on a first interpretation, to mean that the administrator could do anything, unless it was prohibited under the administration order for their appointment. Failing that, a second interpretation was that any disposal of the company's assets could be made, so long as the administrator had authorised it.