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How To Put A Company Into Administration

Last updated: March 30, 2021

The quick answer

The insolvency practitioner that you choose will help you to apply for an Administration order to protect your company or partnership. After the Court approves the application the administrator then takes control and the directors lose all of their powers.

In more detail

the role of the administrator

In most cases you can choose who to use as your administrator. Where you have a debenture, the bank will insist upon an administrator of their own choice – typically they will want to use a larger firm.

To facilitate the administration process, the administrator has to be a Licensed Insolvency Practitioner who, once appointed as Administrator, is an officer of the Court.

It makes sense, if you can, to choose someone that you think you will get on with. They will help explain the process and help you to get the company or partnership into Administration. This can take between a day and a week.

It is usual for the administrator to ask for a lot of help from the directors if the business is to keep running as they will not fully understand how it operates. The administrator may agree for you to be paid, but this needs to be by prior agreement.

a word of advice

Be wary of firms saying ”they” can act as administrator. Only an individual can be an administrator and they have to have an insolvency licence not just a consumer credit licence – ask questions of who you are going to use to make sure all is correct.


If you need insolvency advice the earlier you talk to someone like us the better as you will have more options. We can help, contact us today.

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Author: David Kirk - ACA FABRP
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David Kirk

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