Who can appoint an administrator?

An administrator can be appointed by several parties depending on the circumstances. Company directors or shareholders may initiate the process voluntarily when they recognise insolvency is unavoidable and wish to protect the business from creditor action. Alternatively, a qualifying floating charge holder—typically a bank or financial institution with security over the company’s assets—has the power to appoint an administrator directly. In some cases, creditors or the court may also make the appointment, usually after a winding-up petition has been filed. The choice of who appoints the administrator can significantly affect the process. When directors act proactively, they retain some influence over the choice of insolvency practitioner, while creditor or court appointments may result in less favorable oversight. Regardless of who makes the appointment, the administrator’s duty is to act impartially and in the best interests of all creditors. Understanding who can appoint an administrator helps directors plan their strategy and act before control is taken out of their hands.