§ Mr. DrewTo ask the Secretary of State for Trade and Industry if she will make a statement on the transparency of the position of the administrator in administration proceedings. [161728]
§ Mr. Sutcliffe[holding answer 16 March 2004]: Administration is a collective insolvency proceeding in which the administrator must act in the interests of the creditors as a whole.
The administrator's proposals for achieving the purpose of the administration are subject to the approval of creditors. The administrator is under a duty to report to the creditors on a regular basis, furthermore the creditors can form a committee, which allows them to perform a more active role in overseeing the proceedings.
The administrator's actions are open to challenge by the creditors, if they can satisfy the court that the administrator has acted, or proposes to act, in a way that prejudices or unfairly harms their interests.