ONLINE CHAPTER
FIGURE 22.1 THE VOLUNTARY ADMINISTRATION PROCESS
Directors Secured creditor Liquidator
By resolution of
the Board and
in writing
Charge over all or
substantially all of the
company’s property
Or provisional liquidator Decision to appoint
administrator
Appointment of
voluntary
administrator
Voluntary
administration
begins
Creditors can vote to:
▪ replace the
administrator
▪ create a committee of
creditors.
First meeting of
creditors
Within 8 business
days of appointment
of voluntary
administrator*
(at least 5 business days
notice is required)
Administrator must
investigate company’s
affairs and report to
creditors on
alternatives
Meeting to decide
company’s future
Within 25 or 30
business days
of appointment of
voluntary
administrator*
(at least 5 business days
notice is required)
Creditors decide to
return company to
the control of the
directors
OR
Creditors decide to
accept a deed of
company
arrangement
OR
Creditors decide to
put the company
into liquidation
Outcome of meeting
Within 15 business days*Immediately
Company signs a
deed and deed
administration
begins
Administrator
becomes liquidator
* Unless the court allows an extension of time.
Source: ‘Voluntary Administration: A Guide for Creditors.’ Information Sheet 74, © Australian Securities & Investments Commission.
Reproduced with permission, http://download.asic.gov.au/media/1348514/Voluntary_administration_guide_for_creditors.pdf