Seven Key Moments In The Timeline of the administration process

Administration is where the directors, shareholders or floating charge holders of a company make the decision to place it into administration. As it is a formal insolvency process, it must be carried out by a licensed Insolvency Practitioner. Insolvency law puts in place certain time restrictions, as well as legal obligations for both the board and the acting Insolvency Practitioner.

So, we’ve illustrated the basic processes involved below for the board to place the company into administration, with a timeline to explain what happens at each stage.


The Administration Process: Seven Key Moments In The Timeline

Stage 1: Initial company administration advice meeting
Stage 2: Review information & advice
Stage 3: Instruction and arranging the board meeting
Stage 4: Notice of intention to appoint an administrator
Stage 5: Appointment of an administrator
Stage 6: Statement of affairs
Stage 7: Post liquidation assistance & closure
The Pre-Pack Administration Process 

Stage 1: Initial company administration advice meeting (free)
company administration meeting

Timeline: Same day

Set up for either the same day for an ‘online meeting’, or a face to face meeting at a time and place to suit you. We’ll need at least one of the company’s directors there to explain the financial situation, after which we’ll give you an initial outline of various options available. We’ll leave you with a list of further information to get together.

Stage 2: Review information & advice (free)
Review information advice

Timeline: usually 1-14 days

We review all the information and advise you on all the available options (not just administration). We’ll provide you with a fee quote and our terms of business for review. We talk about how to deal with any company assets (and whether you wish to purchase them), along with any other matters specific to your company, such as leases, personal guarantees or contracts.

Stage 3: Instruction and arranging the board meeting
Instruction arranging board meeting

Timeline: usually 1-3 days

If you would like to go ahead, and you have agreed to our terms, you formally instruct us to assist in placing the company into administration. We will arrange a board meeting to take place to arrange the requisite authorities to allow a designated board member to sign the administration documents.

Stage 4: Notice of intention to appoint an administrator
Notice of intention to appoint an administrator

Timeline: 5 business days

If the company has a qualifying floating charge holder registered at Companies House, advance notice of the administration must be given to them. The designated board member will need to visit their solicitor to provide a statutory declaration on the document. We will then arrange for this to be filed in court and served on any charge holder.

Stage 5: Appointment of an administrator
Notice of intention to appoint an administrator

Timeline: Immediate

Once the notice period has expired or if the charge holder has consented the notice of appointment can be prepared and filed in court. Again we will prepare this document where the designated member will need to visit their solicitor for a further statutory declaration. We will again arrange for the document to be filed in court. Once this is done the company is officially in administration.

Stage 6: Statement of affairs
Statement of affairs

Timeline: 11 business days

Once the company is in administration, the administrator will require you to provide a statement of affairs, detailing the company’s assets and liabilities. This is something you can often prepare with the assistance of your accountant. In order to assist the process, we can liaise directly with your accountant in relation to the requirements of the statement. Once it is completed you will need to sign off on its contents and we will then provide a copy to companies house and creditors.

Stage 7: Post liquidation assistance & closure
Post liquidation assistance

Timeline: usually 9-12 month

We work with you to ensure that the company’s books and records are moved to the administrator’s office and that all assets are properly realised. Each director is required to complete a questionnaire and once we are happy that there are no outstanding matters, we will either apply for the dissolution of the company or move into liquidation to allow for a distribution to unsecured creditors. Either way the administration will come to an automatic end after a year.

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