What is administration

The Court may appoint a licensed insolvency practitioner as administrator. This places a moratorium around the company and stops all legal actions. The administration must have a purpose and the Government encourages the use of company rescue mechanisms after administration. Under the administration option, it is possible for the company and its directors or a creditor like the bank to apply to the court to put the company into administration through a streamlined process.

However, the law requires that any finance provider like a bank or lender , with the appropriate security, is contacted and the aims of the administration be discussed and approved.

The finance provider must have a fixed and floating charge usually under a debenture and the charge holder will need to give permission for the process to go ahead. Five days clear notice is required.

It depends very much on the circumstances. The administrators take on the employment contracts of the company after 14 days so it is desirable that the business is sold out of administration before that date. The insolvency practitioners are not allowed to run the business at a loss and so making the creditors position worse off.

If there are large amounts of money to collect in or substantial realiseable assets then they may trade for longer periods. During this time they will need to report to the creditors at regular intervals.

The pre packaged administration sale is currently a very popular method. However, there is increasing media coverage of creditors' dismay at seeing their "debt dumped" by a former customer.

The company prepares itself to enter administration and sell its assets to a new company "newco" or to an existing 3rd party company. Hard-liners are expected to be purged from the administration. Managing and organizing. C2 [ C ] the people in an organization who manage its business and operations :. The decision to cancel the trip was made by the school administration. C-suite captain of industry CCO CEO CFO directorship employer escalate foreman forewoman management consultant manager manageress managing director middle management superintendent supervisor taskmaster top brass vice president See more results ».

C2 [ C ] a period of government , or the people who are in government :. There are strict controls on the administration of drugs. Giving, providing and supplying. The company has gone into administration, in order for money to be returned to creditors.

You will do mainly administrative work. Matthews said charges against him should be handled administratively. She works as a school administrator. Administration of the scheme is costly in terms of time. She studied business administration at New York University. Some foreign postal administrations, including Britain's and France's, have embraced the concept. Will medical school administrations and faculty be happy to adopt a large increase in class size? It seems like there's an effort to centralize authority in Washington more than there has been in prior administrations.

The company has gone into administration , which was required if any money was to be returned to creditors. His business empire continues to trade and is not in administration. Compare liquidation. See also business administration.

Examples of administration. It represents administration , health-care professionals, patients, and representatives of the clinical disciplines affected by each issue. From the Cambridge English Corpus. All children took part in two tasks, with the order of task administration counterbalanced across children. The administration of the test took about 15 minutes. They took charge of day-to-day administration and defence planning. Institutional funds may need expensive computer systems for administration , accounting, and reporting requirements.

The company went into voluntary administration last week. The administering of punishment, medicine, a sacrament, an oath, etc.

The term of office of an executive officer or body. Their term of office. Origin of administration. From Middle English administracioun , from Old French administration , from Latin administratio , from administrare ; see administer ; compare French administration. Administration Sentence Examples. Related articles. Also Mentioned In.