Type of appointment
{Abbreviation)
"Appointee’s Title"

Appointment mainly initiated by

Main purpose of the appointment

Typical outcomes

Voluntary Administration (VA)
"Voluntary Administrator"

Directors (at a directors’ meeting)

When the company may be insolvent &  the business is being restructured for future trading

• Business is solvent – returned to the control of directors.  Creditors paid as per normal trading terms   OR
• Continue to trade if company is insolvent & a proposal (called a Deed of Company Arrangement – DOCA - see below) is offered to creditors and accepted by them. Creditors paid as per terms of DOCA   OR
• Go into liquidation if company is insolvent & either a DOCA is not offered to creditors or the DOCA offered to creditors is not accepted by them.  All assets sold. Creditors paid from assets when realised in order of priority (see Companies Act s. 556)

Deed of Company Arrangement (DOCA)
"Deed Administrator"

Creditors (at the 2nd Meeting of creditors under a VA)

To fulfill the terms of a DOCA entered into by the Company & creditors

• Fulfillment of the terms of the DOCA (typically creditors being paid less than 100 cents in the dollar of their claim and/or paid over a greater period of time than their normal trading terms)

Creditors Voluntary Liquidation
(CVL)
"Liquidator"

Directors with the support of members (shareholders) at a directors’ meeting & members meeting

When company is insolvent & no future trading strategy is considered possible.

• Company will cease to trade
• All assets sold
• Creditors paid from assets when realised in order of priority (see Companies Act s. 556)

Official Liquidation (OL)
"Official Liquidator"

Creditors without security via a Court hearing

When the company cannot pay a creditor

• Company will cease to trade
• All assets sold
• Creditors paid from assets when realised in order of priority (see Companies Act s. 556)

Receivership
(R & M)
"Receiver & Manager"

Creditor who holds security (a charge) over the company’s assets and its business operations

To satisfy secured creditor’s debt which has become due and payable pursuant to the terms of its charge

• Business/assets of company realised
• Company is likely to cease to trade for commercial reasons (insufficient or no assets left to operate a business)
• Secured creditor gets paid from realisations of assets
• After R & M retires, remaining business returned to control of directors unless a Voluntary Administrator or Liquidator has been appointed.