Notice of Automatic End of Administration

Notice of Automatic End of Administration

A Notice of Automatic End of Administration refers to a legal document that signifies the conclusion of the administration process without the need for a formal application to the court.

Under certain circumstances, an administration may come to an automatic end without the need for a court application or approval. This can occur when the administrator completes their tasks or when a specified time period, as defined by the Insolvency Act 1986 or a court order, elapses.

When the conditions for an automatic end of administration are met, the administrator will prepare and file a Notice of Automatic End of Administration. This notice serves as a formal notification to creditors, shareholders, and other interested parties that the administration has come to an end by operation of law.

The Notice of Automatic End of Administration typically includes information about the date on which the administration automatically ended and may provide a brief summary of the administrator’s activities or outcomes achieved during the administration process.

Upon the filing and approval of the Notice of Automatic End of Administration, the administrator’s powers cease, and the company is no longer under their control. The directors regain control over the company’s affairs, and the administration process is considered concluded.

It is important to note that the automatic end of administration does not necessarily mean the company is completely out of financial distress or that it has fully recovered. Further actions or procedures may be required, such as transitioning to another insolvency process or continuing operations under the control of the directors.