Voluntary Administration In Australia

Article Summary

Voluntary Administration in Australia is a short, formal insolvency process under Part 5.3A of the Corporations Act 2001 (Cth). An independent registered liquidator takes control while investigating the company and testing whether its business or assets can be preserved.

Creditors usually decide at a second meeting whether the company should execute a deed of company arrangement, enter liquidation or return to the directors. Most unsecured claims and court proceedings are stayed during the administration, but secured creditors, landlords, employees and guarantors have distinct rights and exceptions.

Directors should act before cash and records deteriorate; creditors should lodge evidence, examine the administrator’s report and vote on economic outcomes rather than promises; employees should keep their records and understand that the Fair Entitlements Guarantee generally becomes available only after liquidation or bankruptcy, not merely because an