Company Administration

What are the Advantages of Voluntary Administration?

Voluntary Administration offers a range of significant advantages:

  1. Continued Trade

Under Voluntary Administration, your company is given the opportunity to restructure itself as it works to settle its debts, enabling it to continue to trade into the future. This isn’t possible for the long term with a company liquidation, which involves selling off the company’s assets and completely shutting down its operations.

  1. Reduce Debt Amount

A Voluntary Administration provides directors with an opportunity to put forward a proposal to the company’s unsecured creditors. It is sometimes possible to settle the company’s debts for less than the original amount. This is known as a Deed of Company Arrangement (DOCA).

  1. It Doesn’t Last Forever

A Voluntary Administration comes to an end once the company’s creditors either approve a Deed of Company Arrangement; vote to hand the control of the company back to the directors; or, in some circumstances, decide that the struggling company is unable to continue trading and vote to place it into liquidation.


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