Company Administration

Company administration may be needed when a business is suffering financial difficulty.  This is a legal process that requires the appointment of a licensed insolvency practitioner as Administrator.

Enabling the business to buy time to deal with financial difficulties that may be preventing the business from moving forward, the process of Administration is used as part of restructuring. When a company administration order is in place, giving it protection whilst a survival plan or an orderly wind down of the company’s affairs is being achieved. A protective cloak is placed around the company whilst the administration order is in place.

The appointing of Administrators has been simplified, giving the directors and shareholders the option to appoint Administrators by a process of filing a Notice of Intention to Appoint Administrators at Court which is then served upon any party holding a Qualifying Floating Charge, which will usually be the Company’s main financer i.e. banks, who must then approve the appointment.

Upon filing of the Notice of Intention a moratorium is created over the Company preventing any third party from commencing legal action against the Company or continuing any existing legal action without express permission. A critical time whilst the company administration is in place is the breathing space required to discuss and agree a way forward to try to enable the business to survive.

For more information on this solution and all other solutions please contact us on 0845 224 2761