Administration is a formal procedure in which an insolvency practitioner is appointed to act as the administrator of company with the aim saving the company. In the first instance the company must be insolvent.


Ease of appointment (you can even appoint an Administrator without involvement of the Court)

There is a moratorium- This protects the Company from recovery action including winding up petitions and bailiff action.

You may be able to buy the assets of the Company from an Administrator.

The Administrator has power to trade and rescue the company- this could potentially reduce any contribution required from the directors.

There are several ways to exit Administration- this could even include the survival of the Company.


Your Powers cease -and the Administrator "takes over".

Risk to Company- if you can not maintain the agree plan the Company may be liquidated.

Antecedent transactions- these will be investigated and "overturned"

It can be expensive

Publicity- This may mean you lose current and potential customers/suppliers. 

The Administrator must submit a formal "D Report"- this could lead to directors disqualification.