When a retail tenant enters voluntary administration, it creates a complex situation for landlords because the landlord’s usual rights are restricted. Separately from the various tenant protections contained in retail leases legislation, the Corporations Act 2001 (Cth) the Act, prescribes how administrations are conducted, which places limits on landlords’ rights.
What is voluntary administration?
Administration is a process where a company which is, or is likely to become, insolvent appoints an insolvency practitioner – known as an administrator – to take full control of its affairs. It allows the company’s directors or third parties time to find a way to save the business from being liquidated.
Once…