The main objective of a Voluntary Administration is to provide a company with a viable alternative to winding up where there is scope for restructuring its financial affairs.


  • An advantage of the Voluntary Administration option is the expediency with which it can be implemented. The directors are able to effect the appointment of a Voluntary Administrator immediately upon resolving that the company is insolvent or likely to become insolvent.
  • A Voluntary Administration affords the directors the opportunity to consider making a proposal to creditors dealing with the restructuring plan for the company and an arrangement as to how it plans to repay or compromise its debts.
  • There is a moratorium on any outstanding debts, except for secured creditors. These measures provide directors with ‘breathing space’ to focus on the most effective means of resolving the company’s financial problems.
  • Provides an opportunity for the business to continue trading in the future and allows for a greater return to creditors than would otherwise be possible.

Jones Partners has a vast amount of experience with appointments of this type and can assist in providing commercial and practical solutions.

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