The quick answer
This is a Court order to protect a partnership from legal action. You need a Licensed Insolvency Practitioner like us to act as the Administrator.
In more detail
What are the purposes of Partnership Administration?
The usual purpose of Administration is to achieve one of the following:
a. The continuation of the partnership as a going concern.
b. To help secure a Partnership Voluntary Arrangement.
c. To achieve a better value for the assets and business than in bankruptcy or winding up.
Typical uses of a Partnership Administration
A partnership Administration is the same sort of process as a company Administration. It protects the business for a while whilst a financial solution of some sort is worked out. This solution may just mean the business is sold to a new owner or sold back to the business partners.
They are relatively rare because most business are structured as limited companies.
However, they are more common for professional firms such as accountants, solicitors, and surveyors. Pubs, hotels and catering business are often owned as partnerships as well.
They can all use this partnership Administration process to protect the business under financial pressure. It is just important to realise Administration is not an end process in itself – it is a route to protect the business and trade whilst another outcome is agreed.
Partnership Administration applies to partnerships and Limited Liability Partnerships of any size.
It usually takes a few hours to a few days to get a partnership into Administration.