Schedule B1, paragraph 3

The administrator of a company must perform his functions with the objective of— rescuing the company as a going concern, or achieving a better result for the company’s creditors as a whole than would be likely if the company were wound up (without first being in administration), or realising property in order to make a distribution to one or more secured or preferential creditors. Subject to sub-paragraph (4), the administrator of a company must perform his functions in the interests of the company’s creditors as a whole. The administrator must perform his functions with the objective specified in sub-paragraph (1)(a) unless he thinks either— that it is not reasonably practicable to achieve that objective, or that the objective specified in sub-paragraph (1)(b) would achieve a better result for the company’s creditors as a whole. The administrator may perform his functions with the objective specified in sub-paragraph (1)(c) only if— he thinks that it is not reasonably practicable to achieve either of the objectives specified in sub-paragraph (1)(a) and (b), and he does not unnecessarily harm the interests of the creditors of the company as a whole.

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Source: legislation.gov.uk · retrieved 2026-09-04