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Overview

A Voluntary Administration is an avenue for an entity experiencing financial difficulty to appoint an independent External Administrator to take control of the affairs of the company to determine the future direction of the company. This enables an insolvent company to be saved.

The appointment can be made by Directors and there is no need for the Court's involvement.


A Deed of Company Arrangement may follow a Voluntary Administration which allows flexible conditions and all unsecured creditors are bound by the Deed. Read more of Deed of Compant Arrangements here.

Benefits

A Voluntary Administration can maximise the chances of a company continuing to exist coupled with the return to creditors. Directors by appointing an Administrator can avoid personal liability. The appointment imposes a moratorium on debt enforcement. In addition, company guarantees cannot be enforced against directors or relatives when an Administrator is appointed. Also, if a Deed of Company is accepted it will release directors for insolvent trading claims by creditors.

Want more information? Read more on Voluntary Administrations here. Alternatively, feel free to contact us and we will gladly provide you with the information you need



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