Appointment of a voluntary administrator, in the main, is limited to companies which are insolvent or experiencing financial difficulty. A voluntary administrator can be appointed by:
Following his or her appointment, the voluntary administrator takes control of the company’s operations and assets. During the period of voluntary administration, generally about 35 days, the voluntary administrator operates the company’s business (generally with the support of incumbent management), conducts an investigation into the company’s affairs, and works with the directors of the company (or other interested parties) in devising a strategy which will enable the continuation of the company’s business activity and/or a better return to creditors. Any such strategy is then put to creditors as a proposed deed of company arrangement. In the absence of any proposed deed of company arrangement, the company generally proceeds to liquidation.
The appointment of a voluntary administrator, depending on the circumstances, may also avoid personal liability under the director penalty regime of the Australian Taxation Office and avoidance of certain recovery actions only available in the event of liquidation.
The success to date of the voluntary administration regime is testament to the fact that it provides the fastest and most flexible form of external administration and can provide solutions which are not possible or practical under other forms of external administration.
The principals of Dean-Willcocks Advisory have vast experience in the voluntary administration process and have successfully administered countless companies through the voluntary administration and deed of company arrangement process.
Determining insolvency can be complicated, use our self-evaluation questionnaire to determine whether you are experiencing signs of insolvency.
For more information on the voluntary administration process, please contact us to arrange an immediate initial interview without obligation.