Voluntary administration

• benefits of voluntary adminstration?

  • An outside, independent "administrator" is appointed to take control of the company and investigate the possibility of working through liquidity problems to get company back on track
  • Assesses actual financial position
  • Gives time to consult with creditors
• benefits?

  • An outside, independent "administrator" is appointed to take control of the company and investigate the possibility of working through liquidity problems to get company back on track
  • Assesses actual financial position
  • Gives time to consult with creditors
  • Creditors can consider options as a group
  • Is inexpensive to initiate
  •   Provides a legal mechanism to deal with creditors and negotiate payment of debts.
• what is voluntary administration?

  external, independent administrator takes over to investigate company's affairs

  Object: increase possibility of continuing business in successful way

  • if not possible: either enter deed of company arrangement or proceed to wind up company
• how is voluntary adminstration appointed?

  majority of directors

  creditors