Administration is a process whereby
a company is placed under the control of an
Insolvency Practitioner (Administrator).
The Administrator’s objective
(in the following order) is to;
- Where possible, rescue the
whole, or part of, the company as a going
concern.
- Achieve a better result for
creditors than is likely in Liquidation.
- Realise the company’s
assets in order to make a distribution to
creditors.
The Administrator’s powers
are broad, and include the power to carry on
the company’s business and realise its
assets. The administrator is responsible for
the management function and has the power to
remove or appoint directors.
On conclusion of the Administration,
the company may be returned to the control of
its directors, be dissolved, continue with a
CVA or enter
into Liquidation.
An Administration is not necessarily
required for a company to enter into a CVA or
Liquidation.
