administration order
C1/C2 (Low frequency, specialized legal/business term)Formal, Legal, Business
Definition
Meaning
A court order appointing an administrator to manage a company's affairs to rescue it as a going concern or achieve a better result for creditors than winding up.
In broader legal contexts, it can refer to any formal court order directing the administration of an estate, trust, or insolvent entity. In some jurisdictions, it may also refer to court orders regarding the administration of a deceased person's estate.
Linguistics
Semantic Notes
Primarily a UK and Commonwealth legal term. In the US, the closest equivalent is 'Chapter 11 bankruptcy protection' though the procedures differ. The term implies a temporary, court-supervised rescue mechanism rather than permanent dissolution.
Dialectal Variation
British vs American Usage
Differences
The term is central to UK insolvency law (Insolvency Act 1986). In American English, 'administration' in this context is not a standard term; 'bankruptcy protection', 'Chapter 11', or 'receivership' are used.
Connotations
In the UK, it carries a slightly more positive connotation of rescue and continuation. In the US, the analogous terms often carry heavier connotations of financial failure.
Frequency
High frequency in UK legal/business news. Very low to zero frequency in general American English, where it would be misunderstood.
Vocabulary
Collocations
Grammar
Valency Patterns
The court issued/granted/made an administration order for [Company Name].[Company Name] was placed into administration under an order from the court.The creditors applied for/petitioned for an administration order.Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “To be in the hands of the administrators”
- “To go into administration”
Usage
Context Usage
Business
The struggling retailer entered administration, hoping to find a buyer for its profitable stores.
Academic
The study analysed the success rates of companies following an administration order under the 1986 Act.
Everyday
(Rare in everyday use except in news) Have you heard? That big chain shop has gone into administration.
Technical
Pursuant to paragraph 12 of Schedule B1, the administration order imposes a moratorium on creditor actions.
Examples
By Part of Speech
verb
British English
- The judge ordered the company to be administered.
- They are seeking to have the company administrated.
American English
- The company filed to be reorganized under Chapter 11.
- The court placed the business into receivership.
adverb
British English
- The company is being run administratively by the court-appointed officer.
- The assets were sold administratively.
American English
- The firm is operating under bankruptcy protection.
- The estate was managed receivership.
adjective
British English
- The administration process is ongoing.
- The administration costs were substantial.
American English
- The Chapter 11 proceedings were complex.
- The company is under bankruptcy protection.
Examples
By CEFR Level
- The company is in administration.
- Many jobs were lost when the firm went into administration.
- The court granted an administration order to allow the business time to restructure its debts.
- While in administration, the company continued to trade under the control of an independent administrator.
- Creditors voted in favour of the administrator's proposal, allowing the company to exit administration as a going concern.
- The application for an administration order was made on the grounds that the company was, or was likely to become, unable to pay its debts.
Learning
Memory Aids
Mnemonic
Think: ADMINISTRATION ORDER = A court ORDER for professional ADMINISTRATION of a failing company to put its affairs in ORDER.
Conceptual Metaphor
A COMPANY IS A PATIENT: The administration order is emergency surgery/intensive care, the administrator is the surgeon/specialist, and the goal is rehabilitation (rescue) rather than termination (liquidation).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Do not confuse with 'административный приказ' (an administrative directive). The legal concept is closer to 'процедура внешнего управления' or 'конкурсное производство' under court supervision.
- The word 'order' here means a court decree, not a sequence or a command for goods.
Common Mistakes
- Using 'administration order' to mean a government directive.
- Confusing it with 'liquidation' (the end of the company).
- Using it in an American context where 'Chapter 11' is correct.
Practice
Quiz
In which jurisdiction is the term 'administration order' a key part of corporate insolvency law?
FAQ
Frequently Asked Questions
Not exactly. In UK law, administration is a rescue mechanism for companies. Bankruptcy (or 'liquidation') is for ending a company. For individuals, the term is 'bankruptcy'. In the US, 'bankruptcy' is the umbrella term, with Chapter 11 being the corporate rescue equivalent.
Typically, the company itself, its directors, or one or more of its creditors can apply to the court for an administration order.
The primary statutory purposes are: 1) rescuing the company as a going concern, 2) achieving a better result for creditors than in liquidation, or 3) realising property to distribute to secured or preferential creditors.
Not necessarily. Often, the administrator continues to trade the business, usually to sell it as a going concern or to complete existing contracts, which can preserve value for creditors.