Appointing a Voluntary Administrator
The appointment of a Voluntary Administrator is designed to be easy – most importantly it does not involve the Courts or other complicated processes.
By far the most common method of appointment is by the Directors of a company and it is done by signing some simple Resolutions. It requires a majority of Directors to sign the resolution. And, in case you are wondering, where there are two directors, one is not a majority. Therefore, where there is a dispute between two directors it is not possible to appoint a Voluntary Administrator unless they both agree.
But, in fact, a Voluntary Administrator can be appointed in three ways:
- By the Directors of the company;
- By a Liquidator – for example if the liquidator decided a business could be saved; or
- By a Secured Creditor – this is fairly rare.
If you are considering appointing someone as a Voluntary Administrator you should of course check their credentials and verify that they are a Registered Liquidator (an Administrator must be a Registered Liquidator) You can get further details on how to do that here.