Understanding the Administration Process
Administration is one of the options available to insolvent companies who have a potentially viable future. This process protects limited companies and partnerships from legal action being taken against them, without approval from the courts or the administrator.
To begin with, a licensed insolvency practitioner is appointed as administrator to the company. This appointment may be by:
- Any creditor
- The holder of a Qualifying Floating Charge (or QFC), such as the Bank
- The company itself