Voluntary administration
A process where an independent administrator takes control of an insolvent company to decide its future.
The administrator must call a first meeting of creditors within eight business days and a second within about a month, where creditors vote on a deed of company arrangement or liquidation. Suppliers with registered interests have rights the administrator must respect; unregistered suppliers are unsecured creditors.
Related terms
- Liquidation — The winding up of a company: its assets are sold and the proceeds paid to creditors in a fixed order.
- Deed of company arrangement (DOCA) — A binding agreement between a company and its creditors, approved at the second creditors' meeting, that lets the company continue.
- Proof of debt — The form a creditor lodges with an administrator or liquidator to claim what it is owed.
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