Who can appoint an administrator?

The appointment of an administrator is a vital part of corporate insolvency processes, allowing for the rescue or restructuring of a company in financial distress. The correct answer indicates that there are multiple entities who can initiate this appointment.

A company itself can take action to appoint an administrator if it is facing financial difficulties. This is typically done by a resolution of the directors, who have the authority to make management decisions on behalf of the company. Additionally, directors can also act to protect the interests of the company and its stakeholders by initiating administration proceedings.

Moreover, a qualifying floating charge holder, often a secured creditor who holds a certain type of security over the company’s assets, has the right to appoint an administrator as well. This is especially critical when the company is unable to meet its liabilities, and the secured creditor wishes to take preemptive steps in managing the company's debt and assets.

This collective authority for appointment allows various stakeholders—both within the company (like the directors) and outside it (like secured creditors)—to initiate administration, ultimately seeking a more sustainable outcome for the company in financial distress.

In contrast, the roles of shareholders and the court in the appointment process are more limited. Shareholders may indirectly influence the process through their voting rights, but they do