Ann: Appointment of Receivers and Managers, page-36

Choosing voluntary administration

While your company can be forced into administration, your board of directors can also voluntarily choose to appoint an administrator. Seek professional legal and financial advice before taking this step.

In deciding whether voluntary administration is an option for your company, you need to find out:

• whether it has the support of your creditors, and
• whether your creditors are likely to gain more financial benefit from your company avoiding liquidation and continuing to trade.

Other considerations include the:

• extent, nature and spread of your company's debts
• attitude of key suppliers
• history of your company's dealings with creditors
• availability of cash flow.

If you choose to enter into voluntary administration, an administrator is appointed to review and rearrange your business and financial affairs.

If your company can't be saved, the administrator's focus is to provide creditors and shareholders with a better financial return than might have been achieved were your company put straight into liquidation.