Administration
A formal insolvency process under Schedule B1 of the Insolvency Act 1986. Licensed insolvency practitioners take control of the company to rescue it, sell it as a going concern, or realise its assets for creditors.
UK insolvency glossary
Plain-English definitions of the statutory and procedural terms that appear in our coverage. Each entry is short on this index page; click through for the long version with statutory references.
Creditors' voluntary liquidation (CVL)
A liquidation initiated by the company's directors and shareholders when the company can't continue trading. Distinct from compulsory liquidation, which is ordered by a court.
Section 216 of the Insolvency Act 1986
The rule that prohibits a director of a company that has entered liquidation from being involved in another company using the same or a similar name for five years, unless one of the statutory exceptions applies.
Moratorium (Schedule B1, paragraph 43)
The legal pause on most creditor enforcement action that takes effect once a company enters administration.
Secured creditor
A creditor whose debt is backed by a charge over the company's assets. Secured creditors rank ahead of unsecured creditors when assets are distributed.
IP number
The licence number issued by an insolvency practitioner's recognised professional body. It uniquely identifies the individual practitioner.
Proof of debt
The formal claim form a creditor submits to the administrators or liquidators evidencing the amount they are owed.
Prohibited name
A name that section 216 of the Insolvency Act prohibits a director of a liquidated company from using in a new business for five years.
See also: methodology, editorial standards.
