Email David Kirk direct by clicking on his name.

Close this search box.

What does Administration mean for my business?

Last updated: January 16, 2023

The quick answer

If a company is in Administration it means that the business has been protected by a Court order with the objective of:

  • Rescuing the business as a going concern or,
  • Getting a better return for creditors than liquidation or,
  • Repaying secured or preferential creditors.

As a director, your powers end once the company goes into Administration. However usually the Administrator will need the directors cooperation and often delegate some authority to help keep the business running.

In more detail


If you’re new to the topic, read our simple guide to get your head around the subject first. The most common reason to go into Administration is to protect a business and give it time to work out the best solution. This may mean an organised close down or it may result in selling all or part of the business to a new owner or the existing management.

It also means that the business is under the control of the licensed insolvency practitioner appointed by the Court acting as the Administrator.

Once a company has entered Administration, no creditor can take any action against the business without the Court’s or Administrator’s permission. This includes; all suppliers, retention of title creditors, financial companies, HM Revenue and Customs, business rates, employee claims, banks, directors and shareholders.

What Happens after?

The objective of Administration is to protect the business whilst the best solution is worked out. This is usually decided within the first eight weeks.

The whole process normally lasts for up to 12 months but can be extended with creditor approval for a further six months or with the Courts approval for a further 12 months.

Sometimes the problems are resolved and the company is handed back to the directors. In other cases it may mean the business is sold and the remainder liquidated.

Your director’s powers end when the company has gone into Administration.  Usually the arrangement is for you to both work together to get the best outcome for all.


If you have any choice in who is appointed as Administrator I would recommend meeting or talking with them first to make sure you get on. You should also discuss with them the plan of action once they are appointed.

If you would like to know more about administration and whether it is right for you, contact us today.


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.

More questions in this section

Author: David Kirk - ACA FABRP
Everything you need can be done online.
No need to meet anyone in person.
We cover all of England and Wales.
Just a quick email to say a heartfelt thank you for your very calm, considered, expert advice regarding my circumstances on Tuesday. Things looked bleak before you explained my options much more clearly, in simple layman’s terms.
Rob Elliott (14th December 2021)



Sign up to our newsletter

Request a callback

Simply fill out the short form below and I will get back to you.

David Kirk Portrait

David Kirk

Licensed Insolvency Practitioner