Company administration: limitation periods

The High Court has held that, when a company goes into administration, time does not stop running in relation to its creditors' claims. The case acts as a reminder to creditors of companies in administration to be aware of the limitation period of their claim. Where time is running out, creditors can protect their position by:

  • Obtaining the administrator's acknowledgement of the claim (this will restart the applicable limitation period).
  • Applying to the administrator or the court for permission to issue proceedings against the company.

The attached  checklist explains the administration procedure from the perspective of a creditor business.

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