Voluntary Administration: A Practical Guide

Voluntary administration remains the most commonly used formal restructuring tool in Australia — but misconceptions about the process persist.

Voluntary administration is designed to provide a short, structured moratorium within which the future of a company can be assessed. The administrator takes control of the company, investigates its affairs and reports to creditors on the options available.

Creditors then vote at a second meeting on whether to return the company to the directors, accept a Deed of Company Arrangement or wind the company up. The DOCA pathway is particularly valuable where there is a viable business capable of generating a better return than liquidation.

For directors, the key decision points occur before the appointment: is VA appropriate, is the timing right and what is the realistic DOCA proposal? Pre-appointment planning materially improves outcomes.

We advise directors through the full VA lifecycle, from pre-appointment strategy through to post-DOCA implementation and completion.

This publication provides general information only and does not constitute legal, tax or financial advice. Readers should obtain specific advice before acting on any information contained in this article.