The administrator’s power to trade
The directors’ powers to manage to company are suspended following an administration order, but the administrator effectively steps into the shoes of management
An administrator has broad powers to decide what happens if a company goes into administration, including the ability to trade the company, sell the business and assets, raise funding, grant security, hire staff and make redundancies.
The purpose of administration is
- primarily to rescue the company as a going concern;
- or achieving a better outcome for all the creditors than if the company was wound up;
- or to realise property to make a distribution to secured and preferential creditors.
For expert administration order advice, please contact one of our friendly team today and we can help.