Functions of the Administrator and the effect of an administrative order

(1) The administrator of a cell of a protected cell company, (a) may do all such things as may be necessary for the purposes set out in section 22(4) of this Act and for which the administrative order was made; and 26 (b) shall have all the functions and powers of the directors of a protected cell company in respect of the business and cellular assets of or attributable to the cells of a protected cell (2) The administrator of a protected cell company may at any time apply to the Court, (a) for directions as to the extent or exercise of any function or power; (b) for the variation or discharge of an administrative order; or (c) for an order as to any matter arising in the course of its administration. (3) In the exercise of its functions and powers pursuant to this section, the administrator shall be deemed to act as the agent of the protected cell company, and shall not incur personal liability except to the extent to which it acts fraudulently, recklessly, negligently or in bad faith. (4) No person who deals with the administrator in good faith shall be concerned to enquire whether the administrator is acting within its powers. (5) When an application has been made for, and during the period of the operation of an administrative order in respect of a protected cell company or a cell of a protected cell company, (a) no proceedings may be instituted or continued by or against the protected cell company; and (b) no steps may be taken to enforce any security or the execution of legal process in respect of the business or assets of the protected cell company or (as the case may be) the business or assets of or attributable to such cell of the except by leave of the Court which may be conditional or unconditional. (6) During the period of operation of an administrative order, in respect of a cell of a protected cell company, (a) (i) the functions and powers of the directors of the cell company shall cease in respect of the business and cellular assets which are attributable to such cell of the protected cell company; and (ii) the administrator shall be deemed a director of the protected cell company in respect of the protected cell company’s non-cellular assets, unless there are no creditors of the protected cell company in respect of that cell entitled to have recourse against the protected cell company’s non-cellular assets; and (b) the functions and powers of the directors of the protected cell company shall cease.