Company administration can be an effective mechanism for a company to resist the potentially aggressive or damaging actions of a creditor, landlord or government agency.
By recruiting the advice and representation of suitably skilled and experienced insolvency solicitors a firm can use company administration law intelligently and effectively to restructure itself and thereby ensure its secure future.
Simply.Law enables you to choose the insolvency solicitor who is right for your circumstances by providing an intelligent platform that allows you to compare, analyse and recruit reviewed and accredited specialists in this key area of business law.
Is company administration right for you?
Company administration may be the right option for medium to larger sized companies with solid evidence of predictable cash flows and profits. Companies in less secure and predictable financial positions are more likely to be faced with alternative courses of action – for example, creditors voluntary liquidation.
Why administration?
Under the terms of a company administration, an Insolvency Practitioner (IP) is appointed to ensure the company acts to the benefit of its creditors. However, the process also has other aims. These include the rescue of a company and, where possible, a better outcome for creditors than that which would be reached through liquidation.
Appointing an administrator
It is not always necessary to first ensure a court order before the appointment of an administrator, providing of course that there is agreement between the company and/or its directors and floating charge holders.
However, a court order may be required if the company is already in liquidation or has entered a creditors voluntary arrangement.
Obligations of the administrator
Administrators must provide written notice of their appointment to all relevant parties, including the registrar of companies and local press.
All company correspondence from this point must also make clear reference to the fact that the company is in administration and must also display the name of the administrator. The same applies to all online information provided by the company.
In addition, the following steps must be taken:
- Moratorium on proceedings
- Statement of company’s affairs
- Initial creditors meeting
- Rescue proposals
The end of administration
Company administration can only be brought to an end when the administrator has fulfilled its objectives or it has become clear that fulfilling these objectives is not possible.
Additionally, the period of administration may be brought to an end if it has lasted the full sanctioned period or if the company has entered voluntary liquidation or dissolution.
Simply.Law’s business insolvency solicitors
Understanding of the key legal and financial issues is critical to the survival of any business facing insolvency or similar financial concerns. Simply.Law’s insolvency solicitors specialising in company administration bring you confidence and clarity by offering clear and concise legal advice to help you meet your objectives.
Find the company administration solicitor who is right for you by using our Match Service, browsing our member profiles or talking with an advisor today.
