CORPORATE INSOLVENCY

Voluntary Administration

In Voluntary Administration, a Kazar Slaven partner, individually or jointly, acts as an administrator to investigate and determine the possible future for a company.

Voluntary administration allows the business, property and affairs of a company to be administered in a way that maximises the chances of a company’s continuation or provides an outcome resulting in better return for the company’s creditors rather than immediate wind-up.

A company’s directors initiate voluntary administration in writing. It is then the administrator’s responsibility to convene an initial meeting with creditors within eight business days where the creditors have the right to replace the administrator. An investigation is then done and a second meeting is called to determine the company’s future.

Possible outcomes of the voluntary administration process are:

• The liquidation of the company
• A deed of company arrangement
• The termination of the administration (returning the company to its previous state).

Following appointment, the administrator takes control of the company’s business and property and begins investigating its affairs. The administrator then develops a detailed report for the creditors, which includes a recommendation as to which of the three outcomes of the administration is in the creditors’ best interest. A second meeting is convened to decide the outcome of the administration process. The process of voluntary administration is set out in the chart below.

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