Directors and/or shareholder have the ability to appoint an Administrator. This is called voluntary administration. The voluntary administration process gives a window of opportunity called a moratorium period where a plan known as a Deed of Company Arrangement is prepared and submitted to the stakeholders/creditors for approval.
If you have a viable company but have encountered a financial obstacle that may affect the future viability of the company (e.g. a substantial bad debt) then voluntary administration can be a useful mechanism to enable rehabilitation of the business.
Key Points of Voluntary Administration Include:
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