Voluntary Administration
At HM Advisory, we guide directors and business owners through the complexities of Voluntary Administration, helping companies facing insolvency explore options to protect assets, restructure debt and potentially save the business.
Our experienced team provides clarity, advice and hands-on support throughout the process, ensuring compliance and maximising outcomes for all stakeholders.
In Summary:
- Voluntary Administration is a formal Insolvency process designed to assess whether a company can be saved
- An independent Registered Liquidator is appointed as the Voluntary Administrator
- Directors temporarily step aside while the business is assessed, and the process typically runs for ~4–6 weeks
- Outcomes include:
- Return to directors’ control
- A Deed of Company Arrangement (DOCA)
- Transition to Creditors Voluntary Liquidation
What is a Voluntary Administration?
Voluntary Administration is a formal process that allows a company to pause creditor actions while a Voluntary Administrator evaluates its financial position.
The Administrator assumes full control of the company’s operations, property and finances, temporarily suspending directors’ powers, and manages the business to identify the best solution for creditors and the company’s future.
Voluntary Administration is one of several Corporate Insolvency Options, alongside Members’ Voluntary Liquidation (MVL) for solvent companies and Creditors’ Voluntary Liquidation (CVL) for insolvent companies, allowing directors and stakeholders to choose the most suitable course for the business.
How the Voluntary Administration Process Works
-
Appointment of a Voluntary Administrator
- Initiated by directors, a secured creditor, or a Liquidator
- Control of the company transfers immediately
-
Immediate Protection Period
- Most creditor actions are paused
- The business may continue trading under supervision
-
First Creditors’ Meeting (within ~8 business days)
- Creditors can replace the Voluntary Administrator
- A committee of inspection may be formed
-
Investigation and Restructuring Analysis
- Financial position, operations, and viability are assessed
- Potential Restructuring or sale options are explored
-
Second Creditors’ Meeting (usually ~5 weeks)
- Creditors decide the company’s future:
- Enter a DOCA (Restructure debts)
- Enter Creditors Voluntary Liquidation
- Return control to directors
Outcomes of Company Voluntary Administration
| Outcome | What It Means | When It’s Suitable |
|---|---|---|
| Deed of Company Arrangement (DOCA) | Binding agreement to repay debts (often partially or over time) | Viable core business |
| Return to Directors | Company exits Administration | Rare, but possible |
| Creditors Voluntary Liquidation | Business is Wound Down | No viable Recovery pathway |
Our Approach to Voluntary Administration Services
Many firms focus heavily on Liquidation. We don’t.
HM Advisory undertakes a high proportion of Restructuring and Voluntary Administration engagements, reflecting our belief that viable businesses should be given every opportunity to recover. In practice, that means we bring:
- Hands-on leadership throughout the appointment
- Commercial, outcome-focused decision making
- Willingness to explore complex Restructuring pathways
- Capability to manage sophisticated matters with boutique attention
We draw on both the technical expertise of experienced Registered Liquidators as well as a practical understanding of what it takes to return a business to profitability.
Voluntary Administration vs Creditors Voluntary Liquidation
| Key Difference | Voluntary Administration | Creditors Voluntary Liquidation |
|---|---|---|
| Objective | Rescue or Restructure | Wind up the company |
| Control | Administrator takes temporary control | Liquidator takes full control |
| Outcome | DOCA, return to directors, or Liquidation | Company closure |
| Timing | Short-term (weeks) | Final process |
We are here to help
If a business you’re involved with may require our services, please feel free to contact us for an initial consultation – this is free of charge and without obligation.
Victoria
Level 21, 114 William Street
Melbourne VIC 3000
PO Box 117
Collins Street West VIC 8007
T (03) 8866 7600
F (03) 9428 4152
Western Australia
Suite 4, Level 3
16 Victoria Avenue Perth WA 6000
PO Box 6243
East Perth WA 6892
T (08) 9334 7400
F (03) 9428 4152
Queensland
Level 14, 15 Adelaide Street
Brisbane QLD 4000
PO Box 13127
George Street Brisbane QLD 4000
F (03) 9428 4152
New South Wales
Level 2, 263 George Street
Sydney NSW 2000
PO Box R1644,
Royal Exchange
NSW 1255
F (03) 9428 4152
FAQs
What are Voluntary Administration Services?
Voluntary administration services include appointing an experienced administrator, reviewing company finances, communicating with creditors, and developing a recovery or restructuring plan. At HM Advisory, we provide clear, hands-on guidance through every stage, from appointment to resolution, helping directors make informed decisions with confidence.
Who are Voluntary Administrators?
Voluntary administrators are registered liquidators appointed to take control of an insolvent company. They act independently to investigate finances, communicate with creditors and propose the best outcome — whether restructuring or winding up. At HM Advisory, our administrators combine technical expertise with genuine care for all stakeholders.
What is the role of Creditors during Voluntary Administration?
Creditors are kept informed throughout administration. They receive detailed reports, can question the administrator and vote on proposals like a DOCA. Their input helps decide the company’s future while ensuring that directors act transparently, protecting both creditor rights and the long-term prospects of the business.
Can Voluntary Administration save my company?
Yes, in many cases. If a DOCA or restructuring plan is approved, the business can continue trading, satisfy creditors over time and protect assets. HM Advisory works closely with directors to assess realistic recovery options, negotiate terms with creditors and manage the process efficiently to maximise the chance of business survival.
What happens if Voluntary Administration doesn’t work?
If restructuring isn’t viable, the administrator may recommend liquidation. While this may feel daunting, it ensures an orderly winding up, maximising returns to creditors and limiting directors’ personal exposure. HM Advisory supports directors throughout, providing guidance, clarity and reassurance during each stage of this complex process.
How long does Voluntary Administration take?
Typically, the administration process lasts around 20–30 business days, including investigation, reporting and creditors’ meetings. Complex cases may take longer, but the process provides breathing space to assess options thoroughly. HM Advisory manages timelines efficiently while keeping directors and creditors fully informed.
Can my business keep trading?
Yes. Many businesses continue trading during Voluntary Administration while Restructuring options are assessed.
Do directors lose control permanently?
No. Control is temporarily transferred to the Voluntary Administrator, and may return (depending on the outcome).
What is a DOCA?
A Deed of Company Arrangement (DOCA) is a binding agreement between the company and its creditors that outlines how debts will be dealt with, often allowing the business to continue operating.
When should I seek Voluntary Administration advice?
As early as possible. The earlier you engage experienced Voluntary Administration advisors, the more options are available.
Speak With Experienced Voluntary Administration Advisors
If your business is under pressure, the worst option is inaction. At HM Advisory, we provide clear, commercially grounded Voluntary Administration advice to help directors understand their position and act decisively.