Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Administration definition

What does Administration mean? Administration is a corporate insolvency procedure used to protect and stabilise a financially distressed company while an independent insolvency practitioner (the administrator) takes control to pursue rescue or a better return to creditors than liquidation. It is a statutory process in England and Wales and Scotland under the Insolvency Act 1986, Schedule B1, and in Northern Ireland under the Insolvency (Northern Ireland) Order 1989, Schedule B1. Key features include an immediate moratorium on most creditor enforcement, displacement of the directors’ management powers, and appointment either by court order or out of court by the company, its directors or...

Extending an Administration Beyond 12 Months: Creditor Consent, Court Applications, Timing and Common Defects (England and Wales)

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

Under the insolvency Act 1986 (ia 1986), an administration—often called the administration term or the administrator’s tenure—ends automatically after 12 months unless a valid extension is obtained, irrespective of the route by which the administrator was appointed. For more detail, see Practice Note: How an administration comes to an end—Automatic end.

Once that period expires, former administrators lose authority to use any powers granted by the IA 1986. If they act on the mistaken basis that their appointment continues, they may face personal exposure, including claims for trespass or interference with the company’s property and proceedings for breach of duty/misfeasance.

Where additional time is needed, administrators must apply for an extension and present proper grounds—commonly that unresolved administration matters remain, for example the need for further time to realise assets.

How and when can an administrator seek to extend their term?

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Web page updated on 29/05/2026

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