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How to Place Your Company into Administration

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Expert advice and guidance

We provide assistance to help company directors mitigate personal liability claims in Administration.

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Support for company directors

Call 0207 504 1300 now to place your company into Administration

What is Administration?

Administration is a rescue mechanism for asset-rich but insolvent companies. Usually, Administration is a precursor or alternative to liquidation. The procedure allows a company to be:

  • Rescued as a going concern
  • Sold as whole
  • Offloaded in parts to realise cash for creditors.

Administration provides protection from creditors who are threatening legal action. But you (the director) must concede full control of the company's management and future to the Administrator.

Administration Orders

Following an application to court for an Administration Order, there are 3 ways a company can be placed into Administration:

  • In court
  • Out of court
  • If a charge holder (creditor) invites an insolvency practitioner (Administrator) to act as interim chief executive with custodial responsibility for the company's obligations and assets.

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Court Administration

You can present evidence of the company's insolvency to activate a Court Administration. Creditors and other 3rd parties can object when the application is heard by a court judge.


Pre-Pack Administration

Entrepreneurial business owners who have damaged their companies by overtrading often use Pre-Packs to:

  • Dump all of their creditors
  • Buy back the core assets of the business
  • Start trading again under a new company name.


Out-of-Court Administration

You (the director) can activate an Out-of-Court Administration if you believe the company to be insolvent. This involves:

  • Filing an application to the court
  • Making and signing an affidavit or witness statement
  • Calling in an insolvency practitioner to confirm the company's insolvency.

Firstly, a Sale and Purchase Agreement (SPA) between you and the Administrator is drawn up. Secondly, you or a representative will go to court. You should bring the agreement and application for an Out-of-Court Appointment, which the court typically rubber stamps. In most cases, debtors / directors buy back the company's assets on the same day the business goes into Administration. The premises and staff usually stay the same; it's just the company name that changes.


Tips for Company Directors

Legally, Administrators must report the conduct of the director to the Secretary of State for Business, Energy an Industrial Science. Their report will explain the reason for the company's failure. Additionally, you could be held personally liable if the report is damaging and includes wrongdoing or misconduct.There are several alternatives to Administration that can be favourable depending on your particular circumstance. I&L can advise and prepare you for Administration, and recommend one of our commercially-minded insolvency practitioners to manage the process.


Administration is a complex issue and you will need expert advice and support. I&L can help directors protect themselves from personal liability claims. Call 020 7504 1300 now for free and confidential advice…

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