Working With Voluntary Administration

Administrators can be appointed by the directors of the company, the court or a secured creditor. But can a liquidator appoint himself or herself as administrator of the same company? Interestingly, a liquidator or an interim liquidator may appoint himself or herself as an administrator of the company in certain circumstances.

The situation can arise where an interim liquidator or liquidator forms the view that it is in the best interests of the creditors to put the company into administration to enter into a deed of arrangement.

In this article we examine the circumstances in which a liquidator may appoint himself or herself as an administrator under the Insolvency Law Reform Bill (Bill). We also examine the relevant principles which have emerged from the cases in Australia on the comparable section 436B of the Australian Corporations Act 2001 (ACA).