chapter  14
9 Pages

Insider dealing and market abuse

The voluntary arrangement must be supervised by a person, 'the nominee', who must be a qualified insolvency practitioner. The proposal for a voluntary arrangement may be made by the directors of a company or where an administration order is in force by the administrator or where the company is being wound up by the liquidator. Others who seek a court administration order must demonstrate that the company is or is likely to become unable to pay its debts, and that the court order is likely to achieve the purpose of administration. The administrator must additionally file a statement that he consents to the appointment and that the purpose of the administration is reasonably likely to be achieved in his opinion. Section 19 of the Insolvency Act 1986 provided that nothing done or omitted to be done within 14 days of the appointment of an administrator, shall be construed as adoption of employment contracts by the administrator.