Commentary on Sections Postal administration orders Section 71: Powers of the court
304.The section sets out the powers of the court on hearing an application from the Secretary of State or OFCOM for a postal administration order. Subsection (1) states that the Court may:
305.The powers in subsection (1) mirror those for a normal administration as set out in paragraph 13(1) of Schedule B1 to the Insolvency Act 1986.
306.Under subsection (2), the court may only make a postal administration order if it is satisfied that:
307.Section 124A(1) of the Insolvency Act 1986 states:
“(1)Where it appears to the Secretary of State from -
(a)any report made or information obtained under Part XIV of the Companies Act 1985 (company investigations, etc.),
(b)any report made under section 94 or 177 of the Financial Services Act 1986 or any information obtained under section 105 of that Act.
(c)any information obtained under section 2 of the Criminal Justice Act 1987 or section 52 of the Criminal Justice (Scotland) Act 1987 (fraud investigations), or
(d)any information obtained under section 83 of the Companies Act 1989 (powers exercisable for purpose of assisting overseas regulatory authorities),
that it is expedient in the public interest that a company should be wound up, he may present a petition for it to be wound up if the court thinks it just and equitable for it to be so.”
308.Subsection (4) makes it clear that the court cannot make a postal administration order if the company is already in administration (under Schedule B1 to the Insolvency Act 1986) or has gone into liquidation (as defined in section 247(2) of the Insolvency Act 1986).
309.Subsection (6) explains that where the court makes an interim order it may restrict the exercise of a power of the company or its directors, or make provision to confer discretion on a person qualified to act as an insolvency practitioner in relation to the company.
310.Subsection (7) sets out that in the case of a foreign company, the restrictions would relate to powers of the company or the directors within the UK or in relation to the company’s UK affairs, business and property.
311.Subsection (8) sets out that for the purposes of this section, the test for whether a company (registered or unregistered) is unable to pay its debts is the same as that which applies under the Insolvency Act 1986.