Voluntary Administration

When the business is facing financial distress and unable to repay creditors, entering into administration or liquidation can be appropriate pathways. If the business is still viable, and has potential to get back on the front foot, entering into administration is a more suitable option. However, when it comes time to close the doors as there is no other alternative, liquidation is the best method to undergo.

As a director, their roles and responsibilities do not pause due to the company being in administration. A director’s role includes:

• Assisting the administrator by providing financial records, information, processes and key personnel.
• Relinquishing control to the administrator.
• Attending creditor’s meetings.

Once an administrator is appointed, the administration process takes typically between 20-30 business days.

A DOCA, also known as a Deed of Company Arrangement, is an agreement between the company and it’s creditors to relieve the company debts. The agreement binds all creditors, with terms and conditions of repayments ensuring they are appropriate to the company’s financial status. A DOCA provides the company with the opportunity to continue to trade, provide return for creditors as well as making ongoing contributions.