Voluntary Administration Helpline - Australia
An Australian company that is trading whilst insolvent is in breach of the Corporations act and faces the prospect of court liquidation or potentially a creditor's liquidation. A faster and potentially more flexible option that may be open to the directors of the company in question is for the company to go into voluntary administration.
Voluntary administration involves an administrator/insolvency practitioner being appointed to manage the affairs of the company. The administrator will run the company while different options are considered in terms of the company's future. In many cases it can be a better option for the directors of the insolvent company as with court or creditor liquidation there could be a decision to wind up the company in question.
A company placed into voluntary administration in Australia will enter into a Deed of Company Arrangement (DOCA) with its creditors. This DOCA is a binding agreement and will set out how the creditors of the company are to be paid, what assets need to be realised and how the company will eventually be released from the DOCA.
The DOCA does not need court approval however needs to be approved by a majority of creditors for it to be put in place. Once the DOCA has been satisfied by the administrators and the creditors repaid, the company will be handed back to the directors (unless the DOCA specified that the company was to be wound up). To find out more call our helpline for some free advice. Calls to our helpline are free of charge.
How we can help
Jamieson Louttit and Associates are a boutique insolvency practice in Sydney Australia. If you are the director of a company that is insolvent or you are concerned that it might become insolvent in the near future give our helpline a call to arrange a no obligation chat about how we can help you and whether voluntary administration is an option that you should consider. Calls to our helpline are free.
