An Administration Order is a way of preserving a company's business with a view to achieving a more advantageous realisation of the company's assets than if the company were to be placed into Liquidation.
A company can be placed into Administration by the direct appointment of an Administrator by the company, its directors or a creditor who holds the necessary security to enable him to make the appointment. Alternatively, a court may make an order to place the company into Administration, upon application by the company, its directors or any other creditor.
When a company is in Administration the affairs, business and property of the company are managed by a person (“the Administrator”) appointed for that reason.
The Administrator must be a Licensed Insolvency Practitioner. The powers of the Administrator are very broad. They include carrying on the company's business and realising its assets. This is done by removing the board of directors from its management function.
One of the duties of the Administrator is to prepare proposals for approval by the creditors of what he intends to achieve and the purpose of the Administration.
At the appointment of an Administrator, the debts which are due to unsecured creditors are frozen. All actions taken by creditors to recover their debts also cease - this includes any proceedings to wind up the company and any steps to enforce security such as the repossession of goods.
Administration can seem like a daunting prospect, but the highly experienced Dains team will be there throughout to make the decisions deemed fair to all interested parties.
Dains Business Recovery Limited - Registered Company number 10115314. Registered office First Floor, Gibraltar House, Crown Square, First Avenue, Burton on Trent, DE14 2WE. Registered in England and Wales.
Martin FP Smith and Nicola J Meadows are licensed in the United Kingdom to act as Insolvency Practitioners by the Institute of Chartered Accountants in England and Wales. Furthermore, they are both bound by the Insolvency Code of Ethics when carrying out all professional work relating to an insolvency appointment. When acting as Receivers, Administrative Receivers or Administrators they act as agents only, without personal liability and when acting as Administrators, the affairs, business and property of the company are being managed by them.