“As prescribed under the Companies Act”

The primary rationale’ is that under a (VA) an administrator is appointed by the Directors or Creditor to give life to the business by allowing the Administrator to review the financial position of the company and determine if it can trade out of it’s present position.

• The Administrator takes full control of the business under the Act.
• The Administrator takes control of secured assets and negotiates with the secured creditors to move the Company forward.
• The Administrator ascertains the unsecured creditors and has meetings to determine if there is opportunities to move forward.
• The Administrator provides reports on the business to all parties and the Companies Office on it’s investigations.
• This process does not guarantee survival but it has the ability to give the Company a chance of survival.

Voluntary Administration can be an alternative to Receivership or Liquidation of a business in financial difficulties.

More about Voluntary Administration on the NZ Companies site