After his appointment the administrator must advertise it forthwith as follows:

• advertisement in the Gazette
  
• advertisement in a newspaper which he thinks is appropriate to bring it to the notice of creditors

he must also give notice to:

• the company;
  
• any one who has or can appoint an administrative receiver
  
• the Registrar of Companies
  
• to all known creditors (within 28 days)

The administrator acts as an agent of the company, which means that he is not personally liable on contracts. Existing contracts are not affected by the administration order but the administrator may decide not to allow the company to honour them if that benefits the administration. During the course of the administration the administrator may continue existing contracts or make new contracts for the supply of goods and services.

• The administrator has very wide powers to manage the affairs and property of the company and can do almost anything that he considers necessary. He can:
  
• appoint or dismiss directors
  
• deal with assets that are subject to a floating charge as if that charge did not exist (although the secured creditor retains rights over the proceeds)
  
• he needs the consent* of the court to dispose of assets secured by a fixed charge or assets under retention of title, hire purchase, conditional sale or chattel leasing agreements (unless the creditor agrees to their sale)

*That consent will usually be forthcoming if he can persuade the court that disposal will promote the purposes of the administration. The secured creditor is, however, entitled to the net proceeds of sale or the market value, whichever is higher.