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#1 Posted : 13 March 2006 13:01:00(UTC)
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Posted By Peter Stones The Firm I work for can act as administrators in organisations under Administration / Insolvency situations. My question is as to what liabilities and responsibilities do these administrators have towards the employees and non-employees of the organisation in Administration. My own thoughts are that they will become the 'employer'and the usual duties will attach, as they effectively make financial and operational decisions. But so far legal opinions vary tremendously. Thank you in anticipation
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#2 Posted : 13 March 2006 14:33:00(UTC)
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Posted By Simon Ayee As your request suggests I think this is quite a complex issue. One company I have recently been dealing with is in administration. The administrators stated that they have resposnilbility to try and rescue the company as a going concern or if that is not possible get the best deal for creditors. They explained that whilst they controlled the finances the company directors still retained the normal duties and responsibilities. If the administrators do not have the role of employer in the company that is in administration I would have thought that they would still have Section 3(1)or 3(2) duties towards the company's employees and others in relation to decisions made. I.e.their undertaking affecting H&S of others. There appear to other situations in insolvency such as official receivership where the receiver may have control of the organisation. In these cases the employees may be laid off / made redundant. I hope that this is of some help.
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#3 Posted : 13 March 2006 16:43:00(UTC)
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Posted By Robert K Lewis Peter Insolvency Practitioners are de facto the director of the company. Whilst the existing directors may still run the day to day operations they are subject to the IP practitioner, whether it is administration or other insolvency procedure. They are responsible to the courts for their conduct. The position with regards to health and safety is the same as any other director. We have actually designed a training programme for such people if you want to email me I am more than happy to discuss this further. Bob
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