Voluntary Administration

Nature
Voluntary Administration allows for the securing of the assets of a company and putting creditors on hold while a review of its financial position occurs.  A proposal may be put to creditors, which if accepted allows for the company to enter a Deed of Company Arrangement.  If a proposal is either not put forward or not accepted then creditors may wind up the company (liquidation) or release the company from the administrator's control and return its control to the directors.  

Who Can Appoint
The majority of appointments occur following a resolution of the directors that an administrator should be appointed.  Secured creditors who hold security over the whole or substantially the whole of the assets of a  company may also appoint an administrator.  If a company is already in liquidation, the company's liquidators may appoint an administrator. 

Timing

Voluntary Administration may be commenced with minimal delay upon the passing of the necessary resolutions by a company's directors.

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