Monitor | Practical Law

Monitor | Practical Law

Monitor

Monitor

Practical Law UK Glossary w-026-3211 (Approx. 3 pages)

Glossary

Monitor

A monitor of a Part A1 moratorium. This is a statutory role introduced into Part A1 of the Insolvency Act 1986 by the Corporate Insolvency and Governance Act 2020 with effect from 26 June 2020. A monitor must be an insolvency practitioner. Their role is to assess whether a distressed entity that wishes to obtain a Part A1 moratorium meets the statutory criteria to do so. If that entity obtains a Part A1 moratorium, the monitor must then assess whether it continues to meet the criteria during the moratorium. If it does not, then the monitor has a duty to terminate the moratorium.
The monitor is an officer of the court but is privately appointed by the distressed entity and the monitor's fees are not subject to approval by creditors. The monitor's actions may still be challenged by creditors or other affected parties.