Commencing a Voluntary Administration

The commencement of a Voluntary Administration is designed to be easy – most importantly it does not involve the Courts or other complicated processes.

By far the most common method of appointment is by the Directors of a company and it is done by signing some simple Resolutions. It requires a majority of Directors to sign the resolution. And, in case you are wondering, where there are two directors, one is not a majority. Therefore, where there is a dispute between two directors it is not possible to commence a Voluntary Administration unless they both agree.

But, in fact, a Voluntary Administration can be started in three ways:

  1. By the Directors of the company;
  2. By a Liquidator – for example if the liquidator decided a business could be saved; or
  3. By a Secured Creditor – this is fairly rare.

If you are considering commencing a Voluntary Administration you should of course check their credentials and verify that they are a Registered Liquidator (an Administrator must be a Registered Liquidator).

If you would like to learn more about Voluntary Administration, please access our full Voluntary Administration guide created by Insolvency Solutions Group’s specialists explaining this in detail.

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