Commentary on Sections Postal administration orders Section 69: Objective of a postal administration
294.This section sets out the objective of a postal administration.
295.Subsection (1) states that the objective is to secure that:
296.Those means are expressed in subsection (2) as
297.A relevant transfer, as stated in subsection (3), is a transfer as a going concern of so much of the business of the company as is appropriate for the purpose of achieving the objective of the postal administration order. The transfer can be to a single company or, as respects different parts of the business, there may be transfers to more than one company.
298.Subsection (4) provides that one of the ways by which relevant transfers can be effected is through a “hive down”. A hive down is:
299.Subsection (5) places limits on the extent to which relevant transfers can be used to achieve the objective of the postal administration. These emphasise that, where practicable and consistent with the objective of the postal administration, a rescue of the company as a going concern is to be preferred to transfers. Transfers can only be used to extent that:
300.In deciding on what course of action to adopt, the postal administrator will be under a duty to act in a way which, so far as it is consistent with the objective of protecting provision of the universal service, best protects the creditors (see section 72 (3)).