Secured creditors

• No administrative receiver may be appointed
  
• creditors who have supplied goods under retention of title, hire purchase, conditional sale or chattel leasing agreements cannot repossess those goods - but the administrator cannot dispose of them without the consent of either the creditor or the Court;
  
• a creditor with security (which includes retention of title, hire purchase etc) is entitled to vote at meetings only for the unsecured part of his debt.

Unsecured creditors

Effect of petition

• No action to recover outstanding debts can be taken after the petition for an administration order has been presented to the Court

Effect of Order

• existing contracts may be continued or terminated by the administrator
  
• creditors must be given 28 days notice of an administration order
  
• the administrator must call a creditors' meeting to be held no later than three months after his appointment and must send a copy of his proposals with the notice
  
• creditors are entitled to vote on the proposals and may put forward amendments. Voting is by simple majority;
  
• the administrator cannot deal with unsecured creditors' claims. These will be dealt with by a subsequent liquidator or the supervisor of a voluntary arrangement (or occasionally by the company) if neither process ensues