Administration
A company enters into Administration when an administrator (Insolvency Practitioner) is appointed.
The Administrator is employed to manage the company's affairs, business and property.
How it starts?
The Administrator is usually appointed by the Directors or Shareholders.
Advantage 1
Protects the company from legal action, to allow the sale as a going concern.
Advantage 2
Prevents all legal action. Could even stop action from Landlords and Secured Creditors.
Advantage 3
Allows a timescale to propose a Company Voluntary Agreement and for the Directors to regain control of the company.
