Voluntary Administration

Voluntary administration is usually available to directors who are proactive when they see their company is in financial trouble. The voluntary administration process ensures that the business, the company’s assets and affairs are administered in a way that (among other things) maximises the chances of a business continuing to exist by a voluntary administrator taking control as if they are the company directors. The administration process takes place over an interim period, usually lasting between 20 and 30 business days.

The voluntary administration process is a formal pathway to inform creditors that a restructure of debts/operations is needed. It gives assurance to all stakeholders, internal and external to the business that it will undergo an expert review, analysis, and reporting processes.

Why choose voluntary administration?

Solving the right problems at the right time can be the difference between a business surviving or failing. Our people are trained to identify the right action plan for each unique situation, helping businesses in all industries and business models to pivot out of difficult times where possible, and create viable pathways for the business’s future.

The voluntary administration process

A voluntary administrator is appointed to control a company's affairs. The administrator convenes two meetings of creditors. The first meeting is held within eight business days of the appointment. The second meeting is usually held within 20 to 30 business days after the appointment. At the second meeting, creditors will choose the option they believe will best serve their interests. The two most common outcomes of a voluntary administration are a DOCA's (Deed of Company Arrangement) execution or the company's liquidation.