Section A

When a company enters administration, the administrator must perform their functions with a specific statutory objective in mind. What is the primary (first tier) objective of administration under Schedule B1 of the Insolvency Act 1986?

Schedule B1 of the Insolvency Act 1986 sets out a hierarchy of objectives. The administrator must aim for the first objective: rescuing the company as a going concern. Only if this is not reasonably practicable (or if the second objective would achieve a better result for creditors without harming the rescue) can they move to the second objective (better result for creditors than winding up).