In short
The short answer
- Voluntary administration gives a financially distressed company breathing space while an independent administrator assesses its options.
- Most creditor action is paused during the administration. Creditors then vote on the outcome: a Deed of Company Arrangement, a return to the directors, or liquidation.
- Australian Financial Advisory explains what the process means for you and introduces a registered liquidator. We do not act as the administrator.
What is VA
What is voluntary administration?
Voluntary administration is a formal insolvency process designed to give a company breathing space to explore its options. It is often the first formal step when a company faces financial difficulty but may still be viable.
During the process, an independent administrator takes control of the company to investigate its affairs, assess its prospects, and report to creditors on the options.
- A defined statutory timeframe for the process
- Protection from most creditor legal action
- Independent professional oversight
Key objective
Breathing space to assess the company’s future
The primary objective of a voluntary administration is to give a financially distressed company breathing room to assess its future and decide on the best path forward. By appointing an independent administrator, the company gains protection from most creditor action while a proposal is prepared for creditors. The aim is to maximise the chances of the company's survival or, if that is not viable, to achieve a better outcome for creditors than an immediate liquidation.
What it provides
What the process is designed to provide
Creditor protection
Protection from most creditor actions and legal proceedings while the administration runs.
Time to assess
Breathing space to properly evaluate the company’s options.
Independent administrator
A registered liquidator takes control to investigate the company’s affairs and report to creditors.
Creditor decision
Creditors decide the outcome by vote at the second meeting.
The process
The administration process
Appointment
An administrator is appointed by the directors, a liquidator or a secured creditor.
Investigation
The administrator reviews the business, its affairs and the options.
First creditors’ meeting
Held within the statutory period after appointment.
Second creditors’ meeting and decision
Creditors vote on the company’s future at the second meeting, held within the statutory convening period.
Outcomes
Possible outcomes
At the second creditors' meeting, creditors vote on one of the following options for the company's future.
Deed of Company Arrangement
A DOCA is a binding agreement between the company and its creditors that allows the company to continue operating while paying creditors according to the terms agreed in the deed.
- The company may continue trading
- Creditors receive what the deed provides
- The terms are those creditors voted to accept
Our role
What Australian Financial Advisory can and cannot do
We can
- Explain what voluntary administration would mean for you and your company.
- Set out administration alongside the other options in writing.
- Introduce a registered liquidator from our network who can act as administrator.
We do not
- Act as the administrator or accept any appointment.
- Promise that creditors will accept a deed, or any particular outcome.
- Give legal advice.
Common questions
Voluntary administration questions
Who can act as a voluntary administrator?
A registered liquidator. Australian Financial Advisory is not a registered liquidator and does not accept appointments. We explain the process and introduce a registered practitioner from our network.
Does voluntary administration stop all creditor action?
It pauses most creditor action while the administration runs, but there are exceptions set out in the Corporations Act. The administrator explains what applies to the company.
What are the possible outcomes?
At the second creditors’ meeting, creditors vote on whether the company enters a Deed of Company Arrangement, is returned to its directors, or is wound up.
The information on this page is general in nature and does not constitute legal, financial, taxation, or insolvency advice. Australian Financial Advisory Pty Ltd provides assessment and advisory services only. All specialist services are referred to appropriately licensed partners. You should seek independent professional advice before acting on any information on this page.
Content last updated: 2 October 2026.
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