What is the role of an administrator once appointed?

The administrator takes full control of the company from the directors and is responsible for managing the business during the insolvency process. Their primary role is to act in the best interests of creditors as a whole. Administrators assess the company’s financial position, secure its assets, and decide whether to restructure, sell, or liquidate the business. They must prepare proposals outlining their strategy and present these to creditors within a statutory deadline, usually eight weeks. Administrators also communicate regularly with creditors, employees, and stakeholders, ensuring transparency throughout the process. While administrators have wide powers, they are subject to professional regulation and court oversight to prevent abuse. For employees, the administrator may decide to continue trading and retain staff, or make redundancies to reduce costs. For directors, it means losing day-to-day control but gaining protection from creditor claims. The administrator’s actions shape the outcome of the insolvency, making their role central to the company’s future.