What is the Voluntary Administrators Role?
The Voluntary Administrator takes control of a company's assets and then investigates and reports on the company's business, property, affairs and financial circumstances to the creditors of the company.
There are three options available to creditors in a Voluntary Administration and they are;
- End the Voluntary Administration and return control of the company to the directors
- Approve a Deed of Company Arrangement through which the company will pay all or part of its debts
- Liquidate the company
The Voluntary Administrator is required to provide creditors with his opinion on each of the options and recommend which option, in his opinion, is in the best interest of creditors.
The role of the Voluntary Administrator includes taking on all powers of the company and its directors and this will necessarily involve the power to sell assets or close down the company's business in the lead up to the creditors meeting and decision on the future of the company.
The role of the Voluntary Administrator also includes reporting possible offences and breaches of the Corporations Act to the ASIC.
