Article 35 - Vacation of office

(1) The Administrator shall vacate office if:
(A) he ceases to be qualified to act as an insolvency practitioner in relation to the Company; or
(B) the administration is discharged.
(2) Where at any time a person ceases to be Administrator, the following provisions apply.
(3) His remuneration and any expenses properly incurred by him shall be a first charge on and paid out of any property arising from the exercise of his functions as Administrator and which is in his custody or under his control at that time.
(4) Any sums payable in respect of debts or liabilities incurred, while he was Administrator, under contracts entered into by him or a predecessor of his in the carrying out of his or the predecessor's functions shall be a first charge on and paid out of any such property as is mentioned in Article 35(3).
(5) Any sums payable in respect of liabilities incurred during the administration under contracts of employment of employees of the Company shall, to the extent that the liabilities are qualifying liabilities, be a first charge on and paid out of any such property as is mentioned in Article 35(3).

For this purpose, qualifying liabilities shall not include any liabilities under any contract of employment which the Administrator terminates or takes reasonable steps to terminate within 14 days after his appointment.
(6) For the purposes of and subject to Article 35(5), a liability under a contract of employment is a qualifying liability if:
(A) it is a liability to pay a sum by way of wages or salary or contribution to an occupational pension scheme; and
(B) it is in respect of services rendered wholly or partly after the appointment of the Administrator.
(7) There shall be disregarded for the purposes of Article 35(5) so much of any qualifying liability as represents payment in respect of services rendered before the appointment of the Administrator.
(8) For the purposes of Article 35(6) and (7):
(A) wages or salary payable in respect of a period of holiday or absence from work through sickness or other good cause are deemed to be wages or (as the case may be) salary in respect of services rendered in that period; and
(B) a sum payable in lieu of holiday is deemed to be wages or (as the case may be) salary in respect of services rendered in the period by reference to which the holiday entitlement arose.