Understanding The Administration Process
Placing a company in administration is often a complex process, and it’s vital for every business owner to understand how it all works.
First off, an administrator is appointed to the company. This may be by:
• Any creditor
• The holder of a Qualifying Floating Charge (or QFC), such as the bank
• The company itself
If an administrator is appointed by a creditor (via court) or via a QFC, then the director(s) will have no say in which administrator is used. If the company or director(s) appoints an administrator themselves, then they are free to choose whoever they wish to conduct the procedure.
Before being appointed as an administrator, an insolvency practitioner must ensure that he/she will be able to save the company from dissolution, or achieve good results for the company’s creditors. If company survival is simply not possible, the administrator will look to sell the company assets by trading the company or ceasing trade immediately and then selling the assets.
Is An Administration Right For My Company?
Here at My Insolvency, we aim to give you the best possible advice as to which procedure will be best suited to your company’s individual circumstances. If your finances are all over the place and you're feeling completely lost, contact us and let us help you out.