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For companies in distress we offer an independent financial review with advice on various options available.
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How Administration for a Company works.
Administration was introduced by the Insolvency Act 1986 as a procedure aimed at rescuing companies in financial difficulties. The relevant statutory provisions were recently replaced by the Enterprise Act 2002, which came into effect on 15th September 2003.
Under the provisions of the Enterprise Act 2002 an Administrator can be appointed by the Court, by the Company or its Directors or by the holder of a floating charge.
The principal purpose of an Administration Order is to save the Company in question although other purposes are also allowed.
Once the Order is granted a moratorium is put in place to protect the Company from creditors who may not seek to recover any assets without leave of the Court or the Administrator.
The Administrator has wide powers to run the Company whilst he prepares his proposals for achieving the purpose for which the Administration Order has been granted.
Administration may lead to the survival of the Company when control can be handed back to the Directors.
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