Administration - Things you should know about Corporate Insolvency

[Greenbank2]

1. Administration is only one option if a company becomes insolvent.

 

2. Administration is a process to allow the re-structuring of a company, considered, by its board of directors to be viable.

 

3. Administration is a legal process which needs the concurrence of ALL the directors and the board and is a legally binding process and therefore subject to CLIENT ATTORNEY PRIVILEGE.

 

4. BECAUSE OF POINT 3 YOU WILL CERTAINLY NOT HEAR ABOUT HMFC OR ANY OTHER PLC GOING INTO ADMIN FROM ITS EMPLOYEES, CREDITORS, DEBTORS, YOUR WELL-CONNECTED MATES OR ANYONE IN THE PUB/CHIPPIE/BAKERS ETC IF YOU DO, THEY'RE TALKING ****E.

[CalMac]

Administration is also the longest word that Hobos know.

[Martin_T]

Can the mods create an Administration sub forum?

[portobellojambo1]

1. Administration is only one option if a company becomes insolvent.

 

2. Administration is a process to allow the re-structuring of a company, considered, by its board of directors to be viable.

 

3. Administration is a legal process which needs the concurrence of ALL the directors and the board and is a legally binding process and therefore subject to CLIENT ATTORNEY PRIVILEGE.

 

4. BECAUSE OF POINT 3 YOU WILL CERTAINLY NOT HEAR ABOUT HMFC OR ANY OTHER PLC GOING INTO ADMIN FROM ITS EMPLOYEES, CREDITORS, DEBTORS, YOUR WELL-CONNECTED MATES OR ANYONE IN THE PUB/CHIPPIE/BAKERS ETC IF YOU DO, THEY'RE TALKING ****E.

 

As has been said on another thread the place you are possibly likely to see this sort of information relatively quickly is actually on Companies House website.

[monkfish1979]

1. Administration is only one option if a company becomes insolvent.

 

2. Administration is a process to allow the re-structuring of a company, considered, by its board of directors to be viable.

 

3. Administration is a legal process which needs the concurrence of ALL the directors and the board and is a legally binding process and therefore subject to CLIENT ATTORNEY PRIVILEGE.

 

4. BECAUSE OF POINT 3 YOU WILL CERTAINLY NOT HEAR ABOUT HMFC OR ANY OTHER PLC GOING INTO ADMIN FROM ITS EMPLOYEES, CREDITORS, DEBTORS, YOUR WELL-CONNECTED MATES OR ANYONE IN THE PUB/CHIPPIE/BAKERS ETC IF YOU DO, THEY'RE TALKING ****E.

 

You do realise that, in one fell swoop, you have invalidated every single degree that Lochend University has ever awarded.

 

Bravo.

[campagnolo]

1. Administration is only one option if a company becomes insolvent.

 

2. Administration is a process to allow the re-structuring of a company, considered, by its board of directors to be viable.

 

3. Administration is a legal process which needs the concurrence of ALL the directors and the board and is a legally binding process and therefore subject to CLIENT ATTORNEY PRIVILEGE.

 

4. BECAUSE OF POINT 3 YOU WILL CERTAINLY NOT HEAR ABOUT HMFC OR ANY OTHER PLC GOING INTO ADMIN FROM ITS EMPLOYEES, CREDITORS, DEBTORS, YOUR WELL-CONNECTED MATES OR ANYONE IN THE PUB/CHIPPIE/BAKERS ETC IF YOU DO, THEY'RE TALKING ****E.

 

Absolutely spot on. If you hear it from a creditor they are unlikely to be making an application for administration. Far more likely they are applying to court for winding up - liquidation.

[Dusk_Till_Dawn]

1. Administration is only one option if a company becomes insolvent.

 

2. Administration is a process to allow the re-structuring of a company, considered, by its board of directors to be viable.

 

3. Administration is a legal process which needs the concurrence of ALL the directors and the board and is a legally binding process and therefore subject to CLIENT ATTORNEY PRIVILEGE.

 

4. BECAUSE OF POINT 3 YOU WILL CERTAINLY NOT HEAR ABOUT HMFC OR ANY OTHER PLC GOING INTO ADMIN FROM ITS EMPLOYEES, CREDITORS, DEBTORS, YOUR WELL-CONNECTED MATES OR ANYONE IN THE PUB/CHIPPIE/BAKERS ETC IF YOU DO, THEY'RE TALKING ****E.

 

Wrong. Next.

[Jambo66]

1. Administration is only one option if a company becomes insolvent.

 

2. Administration is a process to allow the re-structuring of a company, considered, by its board of directors to be viable.

 

3. Administration is a legal process which needs the concurrence of ALL the directors and the board and is a legally binding process and therefore subject to CLIENT ATTORNEY PRIVILEGE.

 

4. BECAUSE OF POINT 3 YOU WILL CERTAINLY NOT HEAR ABOUT HMFC OR ANY OTHER PLC GOING INTO ADMIN FROM ITS EMPLOYEES, CREDITORS, DEBTORS, YOUR WELL-CONNECTED MATES OR ANYONE IN THE PUB/CHIPPIE/BAKERS ETC IF YOU DO, THEY'RE TALKING ****E.

 

Your point is spoiled by the use of an American legal term which has no relevance in this country (or England for that matter). It makes me wonder if your definition and understanding of "administration" has been taken from American sources as well.

[Rawrrrrrrr]

1. Administration is only one option if a company becomes insolvent.

 

2. Administration is a process to allow the re-structuring of a company, considered, by its board of directors to be viable.

 

3. Administration is a legal process which needs the concurrence of ALL the directors and the board and is a legally binding process and therefore subject to CLIENT ATTORNEY PRIVILEGE.

 

4. BECAUSE OF POINT 3 YOU WILL CERTAINLY NOT HEAR ABOUT HMFC OR ANY OTHER PLC GOING INTO ADMIN FROM ITS EMPLOYEES, CREDITORS, DEBTORS, YOUR WELL-CONNECTED MATES OR ANYONE IN THE PUB/CHIPPIE/BAKERS ETC IF YOU DO, THEY'RE TALKING ****E.

 

Sadly this poster doesnt really know what he is on about

 

1) True

2) Wrong, an Administrator is independent of the board and is not bound to help the board, but the creditors as a group.

3)Wrong, Administration can be granted by a court, and whils ttheir are legal obligations only certain aspects would be priviledged, the administrator is not bound by the rule in the format claimed as they are appointed by a court.

4)Why did everyone know about gretna before it happened then? Yes people are bound by contracts etc but if someone was petitioning for administation, voluntary or involuntary there would be a paper trail of sorts

 

You clearly have used wikipedia and got american rules I suspect

[Geoff Kilpatrick]

As has been said before, any "financial trouble" for us is far more likely to come from winding up orders by the courts from small creditors as opposed to our main creditor placing us in administration, as our main creditor is our majority shareholder.

 

Now can people stop getting their knickers in a twist about this?

[Boof]

Now can people stop getting their knickers in a twist about this?

 

Probably not

[Shotgun-Boogie]

Administartion was 'invented' as an alternative to Liquidation, where the business and assets of the entity rarely survive. Administrators are appointed by the Directors, usually upon the point where they realise that the company is insolvent which is when it cannot pay its debts as they fall due (having debt that outweighs your assets is not insolvent so long as the funding is there).

If an Administartor was appointed, you would hear about it almost immediately (press conference for starters, either by club or the Administrator himself). Also, the Administrator would have to very quickly write to all known creditors, which again would be known to one and all.

It is a process that could not be kept hush-hush. Not possible.

[Rods]

As has been said before, any "financial trouble" for us is far more likely to come from winding up orders by the courts from small creditors as opposed to our main creditor placing us in administration, as our main creditor is our majority shareholder.

 

Now can people stop getting their knickers in a twist about this?

 

 

Thats hibs.net closed until monday then

[Rudolf's Mate]

2. Administration is a process to allow the re-structuring of a company, considered, by its board of directors to be viable.

 

It's decided by the appointed administrator who are not connected with the company in any way and it's not unusual for administrators to place a company into liquidation should they see fit after reviewing the accounts.

 

3. Administration is a legal process which needs the concurrence of ALL the directors and the board and is a legally binding process and therefore subject to CLIENT ATTORNEY PRIVILEGE.

 

Someone else has already answered this one, but I'll chip in and say NOT TRUE!

 

4. BECAUSE OF POINT 3 YOU WILL CERTAINLY NOT HEAR ABOUT HMFC OR ANY OTHER PLC GOING INTO ADMIN FROM ITS EMPLOYEES, CREDITORS, DEBTORS, YOUR WELL-CONNECTED MATES OR ANYONE IN THE PUB/CHIPPIE/BAKERS ETC IF YOU DO, THEY'RE TALKING ****E.

 

For starters we are not a PLC! The first sign of a company in trouble is when it is unable to pay it's creditors/unable to obtain payments from it's debtors so looking out for things such as ccj's is a bit of a giveaway!