Voluntary Administration provides companies the opportunity to trade out of its debts and ultimately insolvency. Directors of a company will appoint an Administrator when they believe the company is unable to pay its debts as and when they fall due ("insolvent") however believe the process will allow the company to trade out of its debts or reach a compromise or arrangement with creditors.
- The control of the company is handed back to the directors;
- The Deed of Company Arrangement (if received) is accepted;
- The company is placed into Liquidation.