What is voluntary administration?

When companies are facing financial distress or solvency problems there are three main options available – voluntary administration, receivership, and liquidation. It is important to choose the remedy most suited to your desired outcome.


Voluntary administration is the most suitable option when wanting to rescue the company and improve its financial position with the assistance of a qualified administrator. This is appropriate for businesses that are still trading but are struggling with cash flow or the burden of debt. The duration of this process also provides statutory protection from legal action and an opportunity to negotiate with creditors. Once the appointment is made, the administrator will take control of the company and become responsible for investigating the financial affairs and making arrangements with creditors.


At the end of the appointment, creditors will vote on one of the three options:

  • To enter into a Deed of Company Arrangement (DOCA) – a proposal submitted by the company to creditors as a compromise of debts due by the company. This is a very flexible arrangement and will be legally binding to all creditors (including unsecured creditors); or
  • To liquidate the company; or
  • To end the administration and hand control back to the directors


If you would like to learn more about voluntary administration and your business debt solutions, please speak to Insolvency Services Australia for free and confidential advice on our 24/7 toll-free hotline on 1800 003 883.



CALL 1800 003 883 NOW