1 / 3

Explain The Voluntary Administration Process?

The voluntary administration process is one of the most effective tools for the directors of companies in financial distress to protect their positions. It can help the company to prevent itself from overwhelming pressure from creditors chasing you to pay debts. In the UK, if you want to use this process to save your business, you have to file a notice stating your intention to appoint an administrator.

liquidationsimple
Download Presentation

Explain The Voluntary Administration Process?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Simple Liquidation Simple Liquidation was developed speci?cally to allow directors a simple and cost-effective way to liquidate their company. Directors can take control of their situation and avoid the risks associated with trading an insolvent business. https://www.simpleliquidation.co.uk/ Explain The Voluntary Administration Process? April 26, 2021 The voluntary administration process is one of the most effective tools for the directors of companies in ?nancial distress to protect their positions. It can help the company to prevent itself from overwhelming pressure from creditors chasing you to pay debts. In the UK, if you want to use this process to save your business, you have to ?le a notice stating your intention to appoint an administrator. Directors of the company can use this process as a tool to evade any legal action by the creditors if it is suffering from a ?nancial crisis. An administrator is appointed by the company to formulate the restructuring plan by taking over the complete control of the business from its directors. The administrator can put the company assets for complete or partial sale depending on the arrangement he makes to pay the debts of the creditors. How administration works Once the directors of a company appoint an administrator, it is his responsibility to notify the creditors and Companies House about his appointment. He also needs to publish a noti?cation related to his appointment by any company for the voluntary administration process in The Gazette. Your administrator has a time of eight weeks to provide a statement about the plan of action he wants to employ for the process. One of the primary tasks of the IP working as an administrator for you is to make sure that your company does not have to face the situation of liquidation. In many cases, it is not possible to rescue the business due to gruesome debt traps. In such situations, he must repay the maximum debt company owes by selling the assets of the company.

  2. What are the responsibilities of the administrator after his appointment? As long as your company is going through a voluntary administration process IP will take control of the business and will monitor all its activities. Below are some of the important roles that he needs to play while monitoring this process:- Negotiating the CVA He is responsible for making negotiation with creditors for the company's voluntary arrangement. He will provide the proposal to the creditors and make sure that they agree to it by providing factual ?gures of bene?ts of accepting that proposal. Sell business as a going concern. He can make arrangements to sell the business as a going concern. It is very vital if the company does not want to lose its present clients and business sources. He can propose to sell the business to similar companies so that the business never has to shut down completely. Selling the assets of the Company If the CVA and selling the business as a going concern are not viable options then, he can arrange to sell the assets of the companies to pay its creditors. Once this process completes he close the affairs of the company and remove its name from the Companies House. If you are also looking for the services of an experienced IP to start with the voluntary administration process, then you can visit the o?cial website of Simple Liquidation now. Call them on 0800 246 5895 or write an email to mail@simpleliquidation.co.uk for a free consultation. companyinsolvencyadvice companyliquidationprocess membersvoluntarywindingupprocess voluntaryadministrationprocess Location: London, UK Enter your comment...

  3. Popular posts from this blog Effective Liquidation and Insolvency November 25, 2020 Insolvency law and practice is an elective subject in programs offered by the business of Law. Simple Liquidation, One of the best websites providing recovery services for your company. Our liquidators are authorized by the Insolvency Practitioners Association in England. We are not an … READ MORE How Members Voluntary Liquidation Process can Help? October 13, 2020 A members voluntary liquidation process allows shareholders to appoint a liquidator in order to formally close down a solvent company. If you decide the MVL is the best course of action, you need to make a declaration of solvency. This will state that a full enquiry has been made into the… READ MORE A Guide to Voluntary Solvent Liquidation October 19, 2020 SimpleLiquidation.co.uk is a regulated insolvency practice. Our liquidators are authorized by the Insolvency Practitioners Association and the Institute of Chartered Accountants in England and Wales. We are not an intermediary, broker, or sales company. As a solvent company, there must be… READ MORE Powered by Blogger Theme images by Michael Elkan

More Related