Voluntary Administration (VA)
An administrator is appointed to review and rearrange a business to avoid liquidation. The administrator can be appointed by the directors of the company, a liquidator, a secured creditor or the court.
The administrator has 8 working days to call the first creditors' meeting for the directors to table an initial statement concerning the affairs of the company and financial position. A second meeting then must be called within 20 days of the appointment of the administrator. At this meeting the administrator may put forward a "deed of company arrangement" which must be approved by 50% in number and 75% in value of creditors at the second meeting (Watershed Meeting).
If the deed is executed, the Directors regain control of the company with powers depending on terms of deed.
If deed is terminated, the Directors regain control of the company unless the deed provides for the company to go into liquidation.
If creditors resolve that the administration should end, the Directors regain control of the company and are responsible for ensuring that the company pays its outstanding debts as they fall due.