All sections · Part XIII: Protected Cell Companies · Sub-Part VII: Administration Orders
248 Functions of administrator and effect of administration order
(1) The administrator of a cell of a protected cell company —
(a) may do all such things as may be necessary for the purposes set
out in section 246(4) for which the administration order was
made; and
(b) shall have all the functions and powers of the directors in
respect of the business and cellular assets of or attributable to
the cell.
(2) The administrator may at any time apply to the Court —
(a) for directions as to the extent or exercise of any function or
power;
(b) for the administration order to be discharged or varied; or
(c) for an order as to any matter arising in the course of his
administration.
(3) In exercising his functions and powers, the administrator is deemed to act
as the agent of the protected cell company, and shall not incur personal
liability except to the extent that he is fraudulent, reckless or grossly
negligent, or act in bad faith.
(4) Any person dealing with the administrator in good faith is not concerned
to enquire whether the administrator is acting within his powers.
(5) Where an application has been made for, and during the period of
operation of, an administration order, no proceedings may be commenced
or continued against the protected cell company or in relation to a cell in
respect of which the administration order was applied for or made except
with the consent of the administrator or the leave of the Court and subject
(where the Court gives leave) to such terms and conditions as the Court
may impose.
(6) For the avoidance of doubt, rights of set-off and secured interests,
including, without limitation, a chargee‘s rights under a charge, and
rights of enforcement thereof, are unaffected by the provisions of
subsection (5).
(7) During the period of operation of an administration order —
(a) the functions of the directors shall cease in respect of the business
and cellular assets of or attributable to the cell in respect of which
the order was made, and
(b) where the company has entered into a recourse agreement
affecting the cell, the administrator of the cell shall be deemed a
director of the protected cell company in respect of the assets
liable under that agreement.
(a) may do all such things as may be necessary for the purposes set
out in section 246(4) for which the administration order was
made; and
(b) shall have all the functions and powers of the directors in
respect of the business and cellular assets of or attributable to
the cell.
(2) The administrator may at any time apply to the Court —
(a) for directions as to the extent or exercise of any function or
power;
(b) for the administration order to be discharged or varied; or
(c) for an order as to any matter arising in the course of his
administration.
(3) In exercising his functions and powers, the administrator is deemed to act
as the agent of the protected cell company, and shall not incur personal
liability except to the extent that he is fraudulent, reckless or grossly
negligent, or act in bad faith.
(4) Any person dealing with the administrator in good faith is not concerned
to enquire whether the administrator is acting within his powers.
(5) Where an application has been made for, and during the period of
operation of, an administration order, no proceedings may be commenced
or continued against the protected cell company or in relation to a cell in
respect of which the administration order was applied for or made except
with the consent of the administrator or the leave of the Court and subject
(where the Court gives leave) to such terms and conditions as the Court
may impose.
(6) For the avoidance of doubt, rights of set-off and secured interests,
including, without limitation, a chargee‘s rights under a charge, and
rights of enforcement thereof, are unaffected by the provisions of
subsection (5).
(7) During the period of operation of an administration order —
(a) the functions of the directors shall cease in respect of the business
and cellular assets of or attributable to the cell in respect of which
the order was made, and
(b) where the company has entered into a recourse agreement
affecting the cell, the administrator of the cell shall be deemed a
director of the protected cell company in respect of the assets
liable under that agreement.
