Administrator's proposals and the creditor vote
Eight weeks into the administration, the administrator must publish the strategy for the case. This is when creditors get their formal say — and when the direction of the administration is set for the remaining ten months.
What proposals must cover
- Identity of directors, shareholders, and administrator
- Statement of the company's affairs (Sch B1 para 47)
- Which statutory purpose is being pursued and why others aren't
- Strategy — sale, wind-down, CVA, restructuring plan
- Estimated outcome for each class of creditor (£ and pence)
- Fees estimate under SIP 9
- Proposed exit route (CVL, dissolution, return to directors)
- Any pre-pack detail with a SIP 16 statement attached
Revisions and challenges
Under para 54, revised proposals must go through the same decision procedure if they are 'substantial'. Common substantial revisions: change of exit route, revised dividend estimate downward, or a new sale being proposed.
Creditors dissatisfied with the administrator's conduct can apply to court under para 74 (unfair prejudice) or para 75 (misfeasance). See our creditor rights playbook.
Frequently asked questions
What are administrator's proposals?
The statutory document required under Sch B1 para 49 IA 1986. It sets out the administrator's strategy for the case, which of the three statutory purposes is being pursued, what has already happened, and what dividends creditors can expect.
When must proposals be issued?
Within 8 weeks of appointment (para 49(5)). An extension can be granted by the court, or by consent of secured creditors and a majority of unsecured creditors. Late proposals without extension are a breach of duty.
What must proposals contain?
Rule 3.35 IR 2016 sets a long list: identity of directors/administrators, statement of company's affairs, statement of proposals for achieving the purpose, reasons why any other purpose isn't achievable, and (for para (b) cases) an estimate of the value to creditors.
How do creditors vote?
By 'decision procedure' under Rule 15 IR 2016 — usually deemed consent, correspondence, or virtual meeting. Physical meetings are rare (must be requested by 10%+ of creditors in value). The threshold is a simple majority in value of those voting.
What is deemed consent?
Under s.246ZF IA 1986, the administrator can propose that proposals be deemed approved unless 10% or more of creditors in value object by a stated deadline (min 14 days). Cheap, fast, and used in most administrations.
Can proposals skip creditor approval?
Under para 52(1)(b), yes — if the administrator concludes there will be no funds beyond secured/preferential creditors and no realistic prospect of rescue. Creditors can still requisition a decision procedure with 10%+ support.
Can proposals be revised?
Yes, under para 54. Revisions must go through the same decision procedure if they are 'substantial'. Non-substantial revisions can be adopted with a notice to creditors.
What if creditors reject the proposals?
The administrator applies to court under para 55 for directions. The court may order revised proposals, replace the administrator, or discharge the administration. Rejection is rare in practice — under 2% of cases according to R3 data.
How are secured creditors treated in the vote?
Under para 73 the administrator cannot propose to affect a secured creditor's rights without that creditor's consent. Secured creditors don't vote for the unsecured majority; they consent separately in writing.
Where can I read the current form?
Rule 3.35 IR 2016 for content; Rule 15.7 for the decision procedure; SIP 7 for presentation standards. Most administrators use the R3 model proposals as a starting template.