Section 521: Moving from administration to creditors’ voluntary liquidation.

(1) This section applies where the administrator of a company thinks that—
(a) the total amount which each secured creditor of the company is likely to receive has been paid to him or set aside for him; and
(b) a distribution is made to unsecured creditors of the company, if there are any.
(2) The administrator may send to the Commission a notice that this section applies.
(3) On receipt of a notice under subsection (2), the Commission shall register the notice.
(4) After an administrator has sent a notice under subsection (2), he shall, as soon as is reasonably practicable—
(a) file a copy of the notice with the Court; and
(b) send a copy of the notice to each creditor of whose claim and address he is aware.
(5) On the registration of a notice under subsection (3) the—
(a) appointment of an administrator in respect of the company ceases to have effect; and
(b) company shall be wound up as if a resolution for voluntary windingup under section 620 of this Act were passed on the day on which the notice is registered.
(6) The liquidator, for the purposes of the winding-up, shall be—
(a) a person nominated by the creditors of the company in the prescribed manner and within the prescribed period; or
(b) the administrator, if no person is nominated under paragraph (a).
(7) In the application of this Chapter to a winding-up by virtue of this section—
(a) section 520 of this Act shall not apply;
(b) this section applies as if the reference to the time of the passing of the resolution for voluntary winding-up were a reference to the beginning of the date of registration of the notice under subsection (3);
(c) sections 523, 532, 533 and 534 shall not apply;
(d) subsection (5) (b) shall apply as if the reference to the time of the passing of the resolution for voluntary winding-up were a reference to the beginning of the date of registration of the notice under subsection (3); and
(e) any creditors’ committee which is in existence immediately before the company ceases to be in administration shall continue in existence after that time as if appointed as a liquidation committee by the creditors at the creditors’ meeting for the purpose of the winding-up.