The corporate insolvency provisions of the Enterprise Act 2002 have been in force since 15 September, 2003.
By now everyone is familiar with the major changes that have been brought about by the act. So far as companies are concerned, the Act impacts on the ability of a floating chargeholder to appoint an administrative receiver, introduces a new administration regime, abolishes the preferential status of Crown creditors and introduces a new fund for unsecured creditors. Under the new provisions, an administrator is required to act in the best interests of all creditors in seeking to achieve the revised statutory purpose of administration.
