Appointment and responsibilities of administrators

Appointing an administrator

An administrator must be a licensed insolvency practitioner. You can find a licensed insolvency practitioner by searching the Insolvency Practitioners Register.

An administrator can be appointed by:

• a resolution of your board of directors
• the liquidator of the company, or interim liquidator
• a secured creditor, or
• a court, if a creditor, liquidator, or the Registrar of Companies applies to have one appointed.

If two or more administrators are appointed, they may operate individually or jointly, unless an order or resolution of appointment states otherwise.

Notice of appointment

Once appointed, and before the end of the next working day, the administrator must:

• give written notice of their appointment to anyone who has registered a financial claim against your company on the Personal Property Securities Register
• file a notice of appointment with us.

A notice of appointment must identify who made the appointment and, if the administrator was appointed by the court, who applied to the court for the appointment.

Once this notice is filed, your company's status on the Companies Register is changed to 'In voluntary administration'.

Within 3 working days, the administrator must also publish public notice of their appointment. This must appear in at least one newspaper in circulation in the area where your business is located.

If the position of administrator becomes vacant

If the administrator dies, resigns or is disqualified, whoever made the original appointment may appoint a replacement. A replacement administrator must also be a licensed insolvency practitioner.

An administrator may also be removed from office by:

• the court, if a creditor, liquidator, the Financial Markets Authority or the Registrar of Companies has made an application, or
• by a resolution of creditors.

If a new administrator is appointed, they must file notice of their appointment with the Registrar and publish a public notice of their appointment. The outgoing administrator must also give notice.

Responsibilities of the administrator

The administrator:

• investigates your company's business affairs and financial circumstances
• calls a first creditors' meeting and a watershed meeting, and
• outlines the options available to creditors, giving an opinion on each option and recommending which is in their best financial interest.

Preparing and filing reports

As soon as possible after appointment, the administrator must form an opinion and report on whether it would be in your creditors' interests for:

• the company to enter into a deed of company arrangement
• the administration to cease, or
• a liquidator to be appointed.

The administrator must report to us any serious problems relating to bodies corporate in administration. This includes offences, breaches of directors’ duties, and misappropriation of company funds.

The administrator must also prepare and file reports with us as prescribed in the Companies (Voluntary Administration) Regulations 2007 and the  Companies (Reporting by Insolvency Practitioners) Regulations 2020

Holding creditors' meetings

The administrator must call a first creditors' meeting, followed by a watershed (final creditors') meeting to decide the future of your company.

What happens after the watershed meeting depends on whether your company:

• is returned to you
• is placed in liquidation, or
• enters into a deed of company arrangement.

Ending voluntary administration

Generally, administration ends when:

• your company and creditors finalise a deed of company arrangement
• your creditors resolve that the administration should end
• your creditors resolve, at the watershed meeting, to appoint a liquidator
• no resolution is passed to finalise a deed of company arrangement
• a deed of company arrangement is not finalised within 15 working days of approval at the watershed meeting, or
• the watershed meeting has not been held within the required time, and no application for a time extension has been made.

Administration may also end if a court:

• orders that the administration end, or
• appoints a liquidator or an interim liquidator.

Filing service for administrators

The Companies Office offers an online service to assist administrators with filing notices and reports, managing their document portfolios, and meeting their statutory reporting obligations.

Other guides in

When your company fails

• What happens during voluntary administration
• What happens after a watershed meeting
• What happens during receivership
• Appointment and responsibilities of receivers
• What happens during liquidation
• Appointment and responsibilities of liquidators
• Filing by administrators, liquidators or receivers
• Holding creditors' meetings

Other help topics