Company rescue is the key note of the Enterprise Act (the "Act") which has now made its final passage through both Houses of Parliament and received the Royal Assent on 7 November 2002. The administration provisions are due to take effect in June/July 2003, once the rules have been written.1
Now is the time to look at how this legislation will affect the way in which security is taken, enforced and realised.
What follows is a step by step guide to the main changes.
The Act does not affect the rights of holders of floating charges granted before a date, yet to be announced (the Appointed Date), to appoint an administrative receiver under their charge.
Charges created after that date will be affected. Holders of floating charges, with some exceptions (discussed below), will not be able to appoint an administrative receiver, but will be able to appoint an administrator if the charge qualifies.
