Appoint voluntary administrator under Part 5.3A Corporations Act
Directors can place company in voluntary administration when insolvent — pause creditor claims for restructuring window.
Who must comply
Directors of insolvent or likely-insolvent companies considering restructuring.
What triggers it
Reasonable grounds to suspect insolvency.
When due
Same-day appointment when conditions met.
Evidence required
Notice of Appointment of Administrator (Form 505); creditor reports.
Max penalty
Personal director liability for insolvent trading if delayed; appointment itself is protective
Summary
Part 5.3A of the Corporations Act allows directors to appoint a voluntary administrator when the company is insolvent or likely to become insolvent. Triggers automatic moratorium on creditor claims (with exceptions). Administrator investigates + recommends DOCA, liquidation or return to directors at second meeting.
Enforced by
Source legislation
Entity types
Topics
Related obligations
- CWLTHPrevent insolvent trading (s 588G)Directors must prevent the company incurring debts while insolvent — or face personal liability.
- CWLTHSimplified Debt Restructuring (small business)Small companies (<$1M liabilities) can use SDR to restructure without full external admin.
- CWLTHApply for a Director Identification Number (Director ID)Every director needs a Director ID before appointment — apply via ABRS.
- CWLTHComply with directors' general law and statutory dutiesDirectors owe duties of care and diligence (s 180), good faith (s 181), no improper use of position (s 182) or information (s 183).
- CWLTHPay company PAYG/GST/SG or face Director Penalty Notice (DPN)Directors personally liable for unpaid company PAYG, GST + SG via DPN regime.
- CWLTHRegister security interests on the PPSRSecured creditors must register on the Personal Property Securities Register to preserve priority.
Frequently asked questions
- Who must comply with voluntary administrator under Part 5.3A Corporations Act?
- Directors of insolvent or likely-insolvent companies considering restructuring.
- What triggers voluntary administrator under Part 5.3A Corporations Act?
- Reasonable grounds to suspect insolvency.
- When is voluntary administrator under Part 5.3A Corporations Act due?
- Same-day appointment when conditions met.
- What is the maximum penalty for voluntary administrator under Part 5.3A Corporations Act?
- Personal director liability for insolvent trading if delayed; appointment itself is protective
- What evidence is required for voluntary administrator under Part 5.3A Corporations Act?
- Notice of Appointment of Administrator (Form 505); creditor reports.
Source: https://asic.gov.au/regulatory-resources/insolvency/voluntary-administration. Rules Mate is not a law firm. Always verify against the live regulator source before acting.