When an administrator is appointed to a company they must give an opinion as to the best of three options available to creditors. These three options are:
I. Wind up the company and appoint a liquidator.
II. End the voluntary administration and appoint a receiver.
III. End the voluntary administration and return the company to the director's control.
IV. Approve a deed of company arrangement through which the company will pay all or part of its debts and then be free of those debts.

Question

Quizplus · Accepted Answer

The correct options are I, III, and IV. These represent the three outcomes an administrator can propose: liquidation, returning control to the directors, or entering into a deed of company arrangement. Option II, appointing a receiver, is not a decision typically made in the context of voluntary administration but rather by secured creditors independently.

When an Administrator Is Appointed to a Company They Must