Voluntary administration (VA) is an insolvency procedure that aims to appoint an external administrator, known as a voluntary administrator, as quickly as possible in order to resolve the future of a company experiencing extreme hardship. A VA is usually initiated by the company director (in efforts to ensure the businesses survival) as soon as they suspect that their company is insolvent or may become insolvent. If, however, a businesses survival is no longer a viable option, the voluntary administrator is appointed to assist in providing better returns for the company’s employees, investors, shareholders, and creditors. The standard duration for voluntary administration is roughly 25 – 30 business days. Upon the finalisation of voluntary administration, the company will enter into a “Deed of Company Arrangement (DOCA) with its creditors, alternatively, it may be placed into liquidation.
Voluntary Administration should not be confused with liquidation. The purpose of VA is different from that of liquidation. The sole purpose of liquidation is to wind the company up effective immediately. Voluntary administration is appointed when the company’s director believes there is still a possibility for the business to return to trade.
Lawrence Group is skilled in assessing your business’ financial position allowing us to provide tailored solutions for your personal situation. We understand corporate insolvency and how voluntary administration can induce long term effects on not only the owners and directors of a company but also the employees, creditors, and shareholders, and we work with you to provide solutions that will make an uncertain time as stress-free as possible for all parties involved.
Lawrence Group has extensive experience in voluntary administration matters across a range of industries. Our expert team is here to provide your company with the support, advice, and knowledge necessary to help you find the best possible outcome for everyone.
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