22 - Administration

Question 1

What is administration?

Answer 1

Instead of going into liquidation, the company is assessed with the the intention to rescue it or achieve better outcomes for creditors (usually if there are prospects that can be capitalised on)

Question 2

What actions can be brought against a company in administration?

Answer 2

None, a court order is issued preventing any legal or insolvency actions from being taken

Question 3

Who can apply to a court for an administration action?

Answer 3

A majority of shareholders (not individuals), the directors or a creditor