Take a break from your business' financial difficulties and get back on the right foot with Voluntary Administration
What Does the Voluntary Administration Process Involve?
Voluntary Administration (VA) is an insolvency process where the director/s of a financially troubled company or a secured creditor with a charge over most of the company’s assets appoint an external administrator called a Voluntary Administrator. VA provides companies an opportunity to put a proposal to creditors rather than going straight into Company Liquidation. The main purpose of the VA process is to ensure the company structure/s and business are preserved, or to provide the best result possible for the creditors.
At the end of the VA process, your creditors must vote for one of three options:
- Approve a Deed of Company Arrangement (DOCA) for your company to pay off its debts,
- End the VA and return the company to your control, or
- Wind up your company and appoint a Liquidator. This is known as Creditors Voluntary Liquidation.
The Voluntary Administrator's Role
The Voluntary Administrator who is appointed to your company must conduct investigations into your company’s affairs. Their responsibilities include:
- Reporting offences to the Australian Securities and Investments Commission (ASIC),
- Taking control of your company’s financial assets,
- Inquiring into the affairs of your company,
- Organising creditor meetings to determine whether or not your company should be liquidated, and
- Communicating with you, your creditors and shareholders to ensure a DOCA is created.
What is Your Role as a Director During Voluntary Administration?
You have an obligation as director of your company to assist the appointed Administrator by:
- Advising the Administrator of the location of your company’s property and delivering any such property in your possession to the Administrator,
- Providing your company’s books and records to the Administrator, or giving access to the books and records to the Administrator,
- Advising the Administrator of the whereabouts of other company records,
- Providing a written report about your company’s business, property and financial circumstances, and
- Meeting with, or reporting to, the external administrator to help them with their inquiries, as reasonably required.
Your Creditors Have the Right to:
Voluntary Administration in Adelaide Can Restore Your Business' Finances
Revive Financial can help businesses in Adelaide and South Australia implement the Voluntary Administration process in order to give company directors and business owners a second chance to grow and survive. We do this by assessing your company’s financial position in a free 30-minute consultation and giving expert advice on the best solution to help. Our qualified team of business debt and insolvency specialists including Chartered Accountants, Registered Liquidators, Bankruptcy Trustees and business advisors have over 43 years of combined experience and are ready to provide expert advice on Voluntary Administration. We support thousands of businesses every year to regain control of their finances and will guide you through the process with understanding and efficiency.