An administration order is an order directing that the affairs, business and property of an LLP shall be directed by a person (the Administrator) appointed by the Court.
A Court may make an Administration Order if:
-it is satisfied that an LLP does not satisfy, or is unlikely to be able to satisfy, the solvency test; and
-it considers that the making of an order may achieve the survival of the LLP or a more advantageous realisation of the LLPs property than would be effected on a winding up.
An application for an Administration Order can be made by all or any of the following:
-any member of the LLP
-any creditor of the LLP
-The Guernsey Financial Services Commission (in the case of a supervised LLP)
-the Liquidator (in the case where the Court has made an order for a winding up, or which has been appointed by the members).
Notice of the intention to make an application for an Administration Order shall be delivered to the Registrar at least 2 clear days before the making of an application. The Registrar will then publish a notice that an application is to be made.
When an Administration Order is made the administrator shall send a copy of the order to the Registrar within 7 days of the date of the appointment. Following receipt of this notice the Registrar will publish a notice that an administration order has been made.
Full details of the Administration Order process can be downloaded below.