In this second instalment of the Demystifying Insolvency series,
we focus on the company Administration process, which to many can
seem confusing given the required steps in the process that are
dictated by statute.
Voluntary Administration is a process regulated by the
Corporations Act 2001 (Cth) (Act), that
can be utilised by directors where they believe a company is
insolvent or likely to become insolvent as a result of an imminent
event. The process provides a regime for an Administrator to take
control of a company's business, property and affairs to ensure
that:
(a) the prospect of the continued operation of the business is
maximised; and
(b) if at all possible a better return for stakeholders is
achieved than if the company was immediately placed into
liquidation.
