Administration

Contents

Overview

Company administration is a legal process that is designed to help struggling companies recover from financial difficulties. 


It is a formal insolvency procedure that is usually initiated when your company is unable to pay its debts and is facing the risk of insolvency.

When your company enters administration, an administrator is appointed to manage the company's affairs. The administrator is usually a licensed insolvency practitioner who is appointed by the company's directors, by the court, or by a qualifying floating charge holder (secured creditor).

What is company administration?

Administration is a way to try to save a viable company in immediate financial distress. A company can be placed into Administration one of three ways:


An administrator has the same general powers as the company and/or its directors once appointed. Their role is to take control of the company and assess its financial situation. They will work to develop a plan to help the company recover from its financial difficulties, which may involve selling assets, restructuring the company, or other measures to help the company return to profitability.


Administration provides the following:



When is it a good option?

Deciding when company administration is a good option for a struggling business can be a complex process that depends on the specific circumstances of the company. 


Here are some general factors to consider when deciding if company administration is a good option:


The decision to enter company administration should be carefully considered and should take into account the specific circumstances of the company. Seeking professional advice from a licensed insolvency practitioner can be helpful in determining whether company administration is a good option.

Administration Process

Here is a simple step-by-step guide to company administration:


Please note that this is a general guide to company administration and the specific steps may vary depending on your individual circumstances. It is always advisable to seek professional advice if you are considering company administration.