Voluntary administration


The aim of a voluntary administration is to enable the business, property and affairs of an insolvent company, or a company which may become insolvent, to be administered in a way that maximises both the chances for the company to continue in existence; and for the return to creditors and shareholders.

The voluntary administration process is instigated by the directors of a company or lenders that hold security of the whole or substantially the whole of a company’s assets and is available to companies which are, or may become, insolvent.

Our experts will provide detailed advice on the benefits of the voluntary administration process and whether the process is recommended for each specific case. We are dedicated to working with the key stakeholders to achieve the desired outcome, be it restructuring a company’s affairs through a deed of company arrangement or by assisting with the transition of the company’s into liquidation.


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Voluntary administration means that the company has appointed an independent administrator to help resolve its financial difficulties. 

It may allow a company to stay out of liquidation whereby an independent person is able to review the company’s affairs and deal with the pressures of creditors.

What is voluntary administration? An insolvency procedure where an external administrator is appointed because the company is in financial trouble. The 'voluntary administrator' is appointed by: the directors after they have decided the company is or is likely to become insolvent.

You should be aware that a company placed in voluntary administration does not mean it is the end of the company or the business, and it is not an admission by the director of failure. 

Some advantages of placing a company into Voluntary administration are:

  1. It gives statutory protection from legal action.
  2. Allows the director time to refocus and improve the business.
  3. The administration can improve the profitability of the company.
  4. It permits negotiation with company creditors.
  5. Stops insolvent trading.
  6. The company can continue to trade.
  7. The director avoids personal liability.

When appointed, an administrator takes on the responsibility for trading, decision making and all liabilities incurred during the administration process.
The aim of a voluntary administration is to enable the business, property and affairs of an insolvent company, or a company which may become insolvent, to be administered in a way that maximises both the chances for the company to continue in existence; and for the return to creditors and shareholders

Voluntary administration is not the same as liquidation. 
The purpose of liquidation is to wind up a company, whereas the purpose of voluntary administration is to assess the company's viability, turn its fortunes around if possible and provide a better return to creditors if not.

Our experts will provide detailed advice on the benefits of the voluntary administration process and whether the process is recommended for each specific case. 

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