This is an alternative to liquidation where an Administrator is appointed to run the company. The company would be maintained (for a period of one(1) year with a possibility of extension by Court) or sold as a going concern so as to enhance value for the benefit of its creditors. An administrator is appointed either by the court, directors/members of the company or creditors and by a holder of a qualifying floating charge. During the period of administration, there is a moratorium on all proceedings against the company.
Where an application for an order for Administration against a company is presented to the Official Receiver the following actions shall be undertaken:
- State Counsel will go through the application.
- If the application is properly drawn, approve the application and indicating the amount to be paid by the petitioner
- Direct the petitioner to make payment of statutory fees at the BRS accounts office.
- State Counsel generate a Certificate of Compliance
- Open a file.
- Where the Court appoints the Official Receiver as administrator or interim administrator.
- Take over the affairs of the company
- Investigate the affairs of the company.
- Develop a proposal for continuity of the company
- Convene a creditors’ meeting.
- Make periodic reports with regards to the company
- Oversee implementation of the proposal
- Report to the court on the outcome of the court.
- Where the proposal is approved present it to Court for adoption.
- Where the Official Receiver is Confirmed as the supervisor, oversee the implementation of the proposal.