Voluntary administration typically lasts 25 to 30 business days, covering appointment, investigation, and creditor decision stages. However, the process can extend due to court approvals, adjournments, or a Deed of Company Arrangement (DOCA). While the administration phase is short, outcomes like restructuring may continue for months or years.
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How Long Does Voluntary Administration Last
Voluntary administration typically lasts 25 to 30 business days. This timeline can extend significantly if the court grants more time for complex cases or if creditors agree to a Deed of Company Arrangement (DOCA).
Key timeline phases include:
- Appointment to First Meeting (Within 8 Business Days): The administrator is appointed and holds an initial meeting to confirm their role and establish a committee of inspection.
- Investigation Period (20–25 Business Days): The administrator audits company records and prepares a report recommending whether to return control to directors, accept a restructuring proposal, or liquidate.
- Second Creditors’ Meeting: Creditors vote on the administrator’s recommendation. This meeting officially concludes the administration phase.
Factors That Extend the Process
- Legal Extensions: For large or complex companies, administrators often apply for court orders to extend the convening period by several months to maximise creditor returns.
- Adjournments: The second meeting can be adjourned for up to 45 business days if more time is required to finalize a sale or a DOCA.
- Execution of a DOCA: If creditors approve a restructuring plan, the company has 15 business days to sign the deed. The subsequent “Deed Administration” can then last for months or years until all terms are met.
Important Points to Remember
Ipso Facto Protections
Ipso facto rules generally prevent certain contracts from being terminated solely because the company has entered voluntary administration. However, these protections do not apply to all agreements.
Secured Creditor Rights
Secured creditors have a 13-business-day decision period to enforce their security or appoint a receiver, which may override the administration process.
Administrator Liability
Administrators may become personally liable for certain expenses, such as rent, if they continue to use company assets beyond a short grace period.
Director Powers
Once an administrator is appointed, directors lose control of the company and cannot act without the administrator’s approval.
Personal Guarantees
Personal guarantees are generally paused during administration but may be enforced once the process ends.
Creditor Voting
If creditors are unable to reach a majority decision, the administrator may exercise a casting vote to determine the outcome.
Employee Entitlements
Any restructuring proposal must account for employee entitlements in accordance with legal priority rules.
Share Transfers Under DOCA
In some cases, a DOCA may allow ownership of the company to be transferred without shareholder consent.
Regulatory Reporting
Administrators must report suspected misconduct, including illegal phoenix activity, to ASIC.
Extended Timeframes
The standard timeline for creditor meetings may extend if it overlaps with holiday periods such as Christmas or Easter.
Next Steps
Understanding how long voluntary administration lasts helps you plan your response and manage expectations during a critical period.
For company directors and stakeholders, the next step is to:
- Identify the administrator’s appointment date
- Track key deadlines, including both creditor meetings
- Engage with the administrator and provide required records promptly
- Review financial position and likely outcomes (DOCA, liquidation, or return to directors)
- Seek advice on director duties and potential liabilities
Acting early ensures you stay informed, meet all obligations, and are prepared for the decision at the second creditors’ meeting.
Seeking professional legal or insolvency advice at this stage can help you understand your position.
At Halo Advisory, we work for you — the director. Financial expert Greg Bartels offers a no-obligation, confidential conversation to help you understand where you stand, what risks exist, and what options are realistically available before deadlines reduce control. Get in touch today.
FAQs
Can two directors appoint an administrator if they disagree?
No, a majority of the board must pass the resolution; in a two-director company, both must agree to start the process.
Can an administrator sell the business before the second meeting?
Yes, the administrator has full power to sell company assets or the entire business immediately if they believe it maximizes the return for creditors.
Do directors still get paid their salary during the VA process?
Directors generally do not receive their usual salary from the company unless the administrator specifically authorises it for ongoing assistance.
What happens if the second meeting ends in a tie?
The administrator holds a “casting vote” to break a deadlock, provided they act in the best interests of the creditors.
Are personal guarantees from directors frozen forever?
No, they are only paused during the VA period; once the administration ends or the company enters liquidation, creditors can pursue the director personally.
Do employees get a say in the restructuring plan?
Yes, employees are legally considered creditors and can vote at both meetings, often holding significant influence in “number” if not in “value.”
What is a “Section 444GA” transfer?
It is a rare legal mechanism where a DOCA allows an investor to take over 100% of the company’s shares without the current owners’ consent.
