An administrator is appointed to control the insolvent business and ensure that the proposals approved by creditors are properly carried out. An administrator has to be a Licensed Insolvency Practitioner.
All formal insolvency processes have to be carried out by a licensed insolvency practitioner. This includes administration. As with most formal insolvency processes the administrator will work to either rescue the company, realise a better outcome for creditors through arranging a sale of the business and assets or facilitating an orderly closure of the business or selling the assets piecemeal to pay the secured or preferential creditors
Two or more persons may be appointed as administrators of a company and usually act jointly and severally.
Insolvency in the UK is regulated under the Insolvency Act 1986 and The Insolvency Rules 2016 with insolvency practitioners being subject to inspections by their Regulators – one of several recognised professional bodies including the Institute of Chartered Accountants for England and Wales (‘ICAEW’), the Insolvency Practitioners Association (‘IPA’) which adhere to the same strict standards of performance and required levels of professional conduct.