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 / Administration


Administration is a formal insolvency process that puts a company under the
control of an external administrator to see if the company can be rescued and
if the owners can turn things around. Alternatively a pre-pack sale can often be
arranged if it is the best outcome for all parties.

Administrators can be appointed by directors, shareholders or even floating
charge holders and other creditors. The administrator’s job is to protect their
interests and if the business can’t be saved, will close it and look to sell company
assets to obtain the best value for creditors.


Administration Solutions

The purpose of administration is to rescue a company if the owners can turn possibly things around.

Watch the guide to Administration

Ed, the Business Rescue Expert, explains what happens when a company looks to go into Administration


Will creditors still be able to chase me for repayments?

No. Administration provides an automatic moratorium preventing creditors from taking further enforcement action so it provides a necessary breathing space.

Does administration provide a better deal for creditors than liquidation?

Generally, yes. Administration will usually provide a better return for creditors than liquidation because the business will either make profit from continuing to trade or if it is sold as part of a pre-packaged administration then the value of assets will be protected.

Is administration free?

Costs can vary regarding the complexity of the process but a pre-packaged administration is highly regulated, as a sale should represent the best value for creditors.

Can I continue to run my business myself?

No. Once a notice of appointment is filed in court, control of the company passes to the administrator even if the longer term aim is to enter a CVA.

After administration will control of my company revert back to me?

Possibly. If the business emerges from a CVA then it will. If the administrator eventually has to sell the business, the previous management will have an opportunity to buy it, although they will have no input into the sale process.

Will directors be interviewed if the company goes into administration?

As part of the administration process, the insolvency practitioner is obliged to examine and report on the actions of directors leading up to the administration.

This is usually a straightforward process to determine that all affairs have been handled properly. It is possible, but rare, that if a director is found to have acted improperly then they could be disqualified from being the director of a limited company for a period of time and/or face a fine too.



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Business Rescue Expert is part of Robson Scott Associates Limited, a limited company registered in England and Wales No. 05331812, a leading independent insolvency practice, specialising in business rescue advice. The company holds professional indemnity insurance and complies with the EU Services Directive. Christopher Horner (IP no 16150) is licenced by the Insolvency Practitioners Association


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