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
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.