Voluntary administration is an insolvency procedure where the directors of a financially troubled company or a secured creditor with a charge over most of the company?s assets appoint an external administrator called a ?voluntary administrator?.
The role of the voluntary administrator is to investigate the company?s affairs, to report to creditors and to recommend to creditors whether the company should enter into a deed of company arrangement, go into liquidation or be returned to the directors.
A voluntary administrator is usually appointed by a company?s directors, after they decide that the company is insolvent or likely to become insolvent. Less commonly, a voluntary administrator may be appointed by a liquidator, provisional liquidator, or a secured creditor
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