What
is an Administration?
This is a relatively new procedure which is aimed
at rescuing companies by protecting them from their
creditors whilst a restructuring plan is developed.
An insolvency practitioner is appointed Administrator
and will manage the company’s affairs, business
and assets for the benefit of creditors.
An Administrator is appointment by either:
an order of the court;
the holder of a floating charge; or
by the company or its directors.
The Administrator’s primary goal is to rescue
the company as a going concern.
If this is not possible, the secondary objective
is aimed at achieving a better result for the company’s
creditors than if the company were to be wound
up.
If neither of these goals can be obtained, the
final aim is to realise the property in order to
make a distribution to one or more preferential
creditors.
No legal proceedings may be started or continued
against a company in Administration except with
the consent of the Administrator or the court.
The procedure to place the company into Administration
is by filing documents in court. If the
court is shut when the appointment is to be made,
the documents can be sent to a designated fax.
The Administrators stay in office will last no
longer than one year unless the duration is extended.
To talk to one of our specialist team members please
call 0800 458 3320 and ask to speak to a member of
our Advice Team who will be happy to discuss YOUR personal
circumstances and help YOU decide which way is the
best for YOUR Company. |
