ACCA LW · Chapter 11 · Question 7 of 10
What is the primary objective of an administrator under Schedule B1 to the Insolvency Act 1986?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To rescue the company as a going concern
Explanation
The administrator must perform their functions with the objective of rescuing the company as a going concern. If that is not reasonably practicable, the objective becomes achieving a better result for creditors as a whole than in a winding up, and only if neither is practicable may property be realised to distribute to secured or preferential creditors. The administrator acts in the interests of creditors as a whole.
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