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The Administration Process and the role of the Administrator

The insolvency practitioner that you choose will help you to apply for an Administration order to protect your company or partnership. After the Court approves the application the administrator then takes control and the directors lose all of their powers.



In most cases you can choose who to use as your administrator. Where you have a debenture the bank will insist upon an administrator of their own choice – typically they will want to use a larger firm.

To facilitate the administration process, the administrator has to be a licensed insolvency practitioner and once appointed as administrator is an officer of the Court.

It makes sense, if you can, to choose someone that you think you will get on with. They will help explain the process and help you to get the company or partnership into Administration. This can take between a day and a week.

It is usual for the administrator to ask for a lot of help from the directors if the business is to keep running as they will not fully understand how it operates. The administrator may agree for you to be paid, but this needs to be by prior agreement.



Be wary of firms saying ”they” can act as administrator. Only an individual can be an administrator and they have to have an insolvency licence not just a consumer credit licence – Ask questions of who you are going to use to make sure all is correct.


Licensed Insolvency Practitioner at Neville & Co.

Lisa is a licensed Insolvency Practitioner. She has been with Neville & Co since 2002 and has built up a wealth of experience in advising businesses and individuals in that time. She passed her insolvency license exams in 2008 and has been taking insolvency appointments since then.
She covers the South West area from Exeter to Penzance and also manages the office in Plymouth.