Pressure from creditors in general; directors at personal financial risk from insolvent trading.

Pressure from banker or secured creditor.

Issue of Directors' Penalty Notices by the Australian Taxation Office.

Disputes between directors or shareholders.

Any legal action or event which may jeopardise the company.

Can be used to save or restructure a financially troubled business.

Appointment usually by directors or secured creditor.

Administrators' powers are:

• to control and trade-on business
• to investigate the company's affairs
• report to creditors on the company's affairs
  

Moratorium imposed on debt and guarantee enforcement during the voluntary administration.

At end of administration, company usually enters into a Deed with its creditors or is placed into liquidation.

If Deed prescribes that company will trade-on, control of company usually reverts to directors.

Provides the company with breathing space to deal with creditors in an orderly manner and prepare proposal to give the best return to stakeholders.

Reduces the possibility of secured creditor proceeding against the assets of the company.

Allows independent person to review the company's affairs and deal with the pressures of creditors.

May allow company to stay out of liquidation.

Can often be used where directors' penalty notices for taxation are pending reducing the risk of personal liability upon directors.

If Deed approved, will eliminate possible insolvent trading claim.