ACCA · Question 22 · Corporate and Business Law
Under Schedule B1 of the Insolvency Act 1986, an administrator must perform their functions with the objective of rescuing the company as a going concern. If this primary objective is not reasonably practicable, what is the administrator's secondary objective?
Answer options:
Realising property in order to make a distribution to one or more secured or preferential creditors.
Achieving a better result for the company's creditors as a whole than would be likely if the company were wound up.
Investigating the conduct of the directors for fraudulent trading.
Immediately selling the company's assets to the highest bidder.
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