If you feel like you’ve seen the words “voluntary administration” just about everywhere this year, you’d be on the money.
From airlines to outback events, few companies have been free from the pinch of the economic climate.
So what exactly is voluntary administration? Why are we seeing more businesses surrender to it, and is there a way for them to get out of it?
The answer to business woes
Let’s start with defining a few key terms, as outlined by the Fair Work Ombudsman.
Voluntary administration
Procedure where an external administrator is appointed because the company is in financial trouble.
Administrator
An external and qualified person appointed to investigate and manage the company’s affairs — they decide what happens next.
Insolvent
When…