welcome to dissolve in this advice I will
talk about voluntary administration what it is and when it’s a good idea but in brief a voluntary administration can
be a great way to save a business but you need to be a bit careful because i
think they are over used so what is a voluntary administration well it is sometimes called an
administration or a VA it’s done under the corporations law so
it’s binding on all creditors the directors appoint an administrator
that takes control of the company there is a process set out in the law
with the objective being to save a business by doing a deal between creditors
and the company so what is a model company for a voluntary administration well a company that should consider a VA is one that is insolvent so it needs a deal with creditors, it’s a trading business it commonly has had a one-off loss or
bad trading period that is not expected to repeat itself, and so it is a viable business provided the
company can get some breathing space so is voluntary administration
appropriate for your company? here’s a question that I like to ask If we can fix the debt problems can the
company trade profitably in the future? If you can answer yes to that question
then a voluntary administration is likely to be the answer for you. So, how would you kick off the process? Well appointment is very easy. Iit is simply a resolution of the
directors of the company you would simply sign a document like the
one on screen there is a detailed process that follows
but that is run by the administrator the process is designed to start and
finish in a little over a month the objective is to agree a Deed Of
Company Arrangement commonly called a DOCA so what’s that? Well think of a DOCA as a deal between the company and its creditors. The law doesn’t say what the deal has
to be, so the DOCA can be designed to suit the situation. So in summary a Voluntary Administration
can be a great way to save a business but remember it’s a tricky process so
make sure you get good advice before proceeding with a VA if you’d like more information please
give us a call