Section 2: Section 2: Application for, and making of, the Administration Order
Article 8 - Administration Order(1) The
QFC Courtmay make an Administration Orderin relation to the Companyif, and only if, it is satisfied:(A) that the Companyis or is likely to become unable to pay its debts (within the meaning given to that expression by Article 78; and(B) that the making of an order under this Article 8 would be likely to achieve one or more of the purposes set out in Article 7.(2) An Administratorof a Companymeans a person appointed under these Regulationsto manage the Company'saffairs, business and property.(3) The Adminstration Ordershall specify the purpose or purposes for which it is made.(4) An Adminstration Ordershall not be made in relation to a Companyafter it has gone into Liquidation.
Article 9 - Application for order(1) An application to the
QFC Courtfor an Adminstration Ordershall be by application either by the Companyor the directors, or by a creditor or creditors (including any contingent or prospective creditor or creditors), or by the QFC Authorityor by all or any of those parties, together or separately.(2) On hearing an application the QFC Courtmay dismiss it, or adjourn the hearing conditionally or unconditionally, or make an interim order or any other order that it thinks fit.
Article 10 - Witness statement to support application(1) Where it is proposed to apply to the
QFC Courtfor an Adminstration Orderto be made in relation to a Company, a witness statement complying with Article 12 below must be prepared, with a view to its being filed in the QFC Courtin support of the application.(2) A witness statement in support of an application by the Companyor the directors must be made by one of the directors, or the secretary of the Company.(3) A witness statement in support of an application by creditors must be made by one of the creditors acting under the authority of all those applying.(4) A witness statement in support of an application by the QFC Authoritymust be made by a person acting under the authority of the QFC Authority.
Article 11 - Independent report on Company's affairs(1) There may be prepared, with a view to its being exhibited to the witness statement in support of the application, a report by an independent person to the effect that the appointment of an
Administratorfor the Companyis expedient.(2) The report may be by the person proposed as Administrator, or by any other person having adequate knowledge of the Company'saffairs, not being a director, secretary, manager, member, or employee of the Company.(3) The report shall specify the purposes which, in the opinion of the person preparing it, may be achieved for the Companyby the making of an Adminstration Order, being purposes particularly specified in Article 7.
Article 12 - Contents of witness statement(1) The witness statement shall state:(A) the deponent's belief that the
Companyis, or is likely to become, unable to pay its debts and the grounds of that belief; and(B) which of the purposes specified in Article 7 is expected to be achieved by the making of an Adminstration Order.(2) There shall in the witness statement be provided a statement of the Company'sfinancial position, specifying (to the best of the deponent's knowledge and belief) its assets and liabilities, including contingent and prospective liabilities.(3) Details shall be given of any Security Interestknown or believed to be held by creditors of the Companyand whether in any case the Security Interestis such as to confer power on the holder to appoint an Administrator.(4) If any application has been made for the winding up of the Company, details of it shall be given in the witness statement, so far as within the immediate knowledge of the deponent.(5) If there are other matters which, in the opinion of those intending to make the application for an Adminstration Order, will assist the QFC Courtin deciding whether to make such an order, those matters (so far as lying within the knowledge or belief of the deponent) shall also be stated.(6) If a report has been prepared for the Companyunder Article 11, that fact shall be stated. If not, an explanation shall be provided why no such report has been prepared.
Article 13 - Form of application(1) If made by the
Companyor by the directors, the application shall state the name of the Companyand its address for service, which (in the absence of special reasons to the contrary) is that of the Company'sregistered office.(2) If made by a single creditor, the application shall state his name and address for service.(3) If the application is made by the directors, it shall state that it is so made under Article 9; but from and after being made it is to be treated for all purposes as the application of the Company.(4) If the application is made by two or more creditors, it shall state that it is so made (naming them); but from and after being made it is to be treated for all purposes as the application of one only of them, named in the application as applying on behalf of himself and other creditors. An address for service for that one shall be specified.(5) The application shall specify the name and address for service of the person proposed to be appointed as Administrator; and it shall be stated that, to the best of the applicant's knowledge and belief, the person is qualified to act as an insolvency practitioner in relation to the Company.(6) There shall be exhibited to the witness statement in support of the application:(A) a copy of the application;(B) a written consent by the proposed Administratorto accept appointment, if an Administration Orderis made; and(C) if a report has been prepared under Article 11, a copy of it.
Article 14 - Filing of application(1) The application and witness statement shall be filed in the
QFC Court, with a sufficient number of copies for service and use as provided by Article 15.(2) Each of the copies delivered shall have applied to it the seal of the QFC Courtand be issued to the applicant; and on each copy there shall be endorsed the date and time of filing.(3) The QFC Courtshall fix a venue for the hearing of the application and this also shall be endorsed on each copy of the application issued under Article 14(2).(4) After the application is filed, it is the duty of the applicant to notify the QFC Courtin writing of any winding up application made against the Company, as soon as he becomes aware of it.
Article 15 - Service of application(1) In the following paragraphs of this Article 15, references to the application are to a copy of the application issued by the
QFC Courtunder Article 14(2) together with the witness statement in support of it and the documents (other than the copy application) exhibited to the witness statement.(2) The Application shall be served:(A) on any Secured Creditorwho may be entitled to appoint an Administrator;(B) if there is pending an application for the winding up of the Company, on the applicant;(C) on the QFC Authority; and(D) on the person proposed as Administrator.(3) If the application for the making of an Administration Orderis made by creditors of the Company, the application shall be served on the Company.(4) Where, after receiving notice that an administration application has been made, a Secured Creditor appoints an Administratorin reliance on Article 20, he shall as soon as reasonably practicable send a copy of the notice of appointment to the person making the administration application and to the QFC Court.
Article 16 - Manner in which service to be effected(1) Service of the application in accordance with this Article 16 shall be effected by the applicant not less than five days before the date fixed for the hearing.(2) Service shall be effected as follows:(A) on the
Company(subject to Article 16(3)), by delivering the documents to its registered office; and(B) on any other person (subject to Article 16(4)), by delivering the documents to his proper address.(3) For the purposes of Article 16(2), a person's proper address is any which he has previously notified as his address for service; but if he has not notified any such address, service may be effected by delivery to his usual or last known address.(4) Delivery of documents to any place or address may be made by leaving them there.
Article 17 - Proof of service(1) Service of the application shall be verified by witness statement, specifying the date on which, and the manner in which, service was effected.(2) The witness statement, with a sealed copy of the application exhibited to it, shall be filed in the
QFC Courtforthwith after service, and in any event not less than one day before the hearing of the application.
Article 18 - The hearing(1) At the hearing of the application, any of the following may appear or be represented:(A) the applicant;(B) the
Company;(C) any person who has made an application for the winding up of the Company;(D) the QFC Authority;(E) any Secured Creditor;(F) one or more of the directors of the Company;(G) the person proposed for appointment as Administrator; or(H) with the leave of the QFC Court, any other person who appears to have an interest justifying his appearance.(2) On hearing an application for an Administration Order, the QFC Courtmay:(A) make the Administration Ordersought subject to any conditions that the QFC Courtconsiders appropriate;(B) dismiss the application;(C) adjourn the hearing conditionally or unconditionally;(D) make an interim order;(E) treat the application as a winding-up petition; or(F) make any other order which it thinks appropriate.(3) If the QFC Courtmakes an Administration Order, the costs of the applicant, and of any person appearing whose costs are allowed by the QFC Court, are payable as an expense of the administration.
Article 19 - Notice and advertisement of Administration Order(1) If the
QFC Courtmakes an Administration Order, it shall forthwith give notice to the person appointed as Administrator.(2) As soon as is reasonably practicable after the order is made, the Administratorshall advertise its making once in such newspapers as he thinks most appropriate for ensuring that the order comes to the notice of the Company'screditors, which where appropriate may include newspapers published outside the State.(3) The Administratorshall also as soon as is reasonably practicable give notice of the making of the order:(A) if there is pending an application for the winding up of the Company, to the applicant (and also to the provisional Liquidator, if any);(B) to the QFC Authority;(C) to any Secured Creditor; and(D) to the CRO.(4) Two sealed copies of the order shall be sent by the QFC Courtto the Administrator, one of which shall be sent by him to the CRO.