15.8 Termination of appointment and replacement of adminstrators

15.8 TERMINATION OF APPOINTMENT AND REPLACEMENT OF ADMINISTRATORS

1. Completion of administration:

Termination: The administrator’s appointment may be terminated upon the successful completion of the administration objectives. This occurs when the proposed plan is implemented, assets are realized, and creditors’ claims are satisfied to the extent possible.

Exit strategy: The company may be handed back to the directors, or ownership may be transferred to new owners, depending on the specific circumstances.

2. Court or Creditor Decision:

Replacement by court order: The court may order the termination of the current administrator’s appointment and the appointment of a new administrator. This could be due to concerns about the performance, conduct, or conflicts of interest of the existing administrator.

Replacement by creditors: Creditors with sufficient voting power may pass a resolution to replace the existing administrator with a new administrator. This may occur if creditors have lost confidence in the current administrator or if there are disputes or conflicts among stakeholders.

3. Resignation or Removal:

Resignation: An administrator may choose to resign from their position voluntarily, citing personal reasons or conflicts of interest. Proper notification and compliance with legal procedures may be required for an effective resignation.

Removal: The court or relevant authorities may remove an administrator if there are concerns about their performance, misconduct, or failure to fulfill their duties. Removal may be initiated by creditors, stakeholders, or regulatory bodies.

4. Company Voluntary Arrangement (CVA):

Replacement for CVA implementation: In cases where a Company Voluntary Arrangement (CVA) is approved, the administrator’s role may transition to that of a supervisor who oversees the

implementation and management of the CVA. This change in role may involve the appointment of a new supervisor.

5. Death, Illness, or Incapacity:

Unforeseen circumstances: If an administrator passes away, falls seriously ill, or becomes incapacitated, their appointment may be terminated, and a replacement administrator may be appointed to continue the administration process.