FAQs Archive - Page 9 of 10

Q: How Long Does Voluntary Administration Last?

The process typically runs for 20 to 30 business days, although it can be extended by creditors or the court. If a DOCA is approved, the administration phase ends, and the company continues under the terms of the agreement.

Q: What Is A Deed Of Company Arrangement?

A Deed of Company Arrangement (DOCA) is a legally binding agreement between a company and its creditors that sets out how the company’s affairs and assets will be managed. It follows a period of voluntary administration and is designed to either save the business or provide a better financial return for creditors than if the company were immediately shut down (liquidated).

Q: Does Voluntary Administration Mean The Business Has Failed?

No. It is a legal mechanism to assess viability and restructure where possible. Outcomes depend heavily on timing and preparation.

Q: Is Being Behind On Tax Enough To Be Insolvent?

Not on its own. However, persistent unpaid tax without a structured repayment plan is a strong indicator of insolvency risk and often precedes enforcement action.

Q: If My Business Is Insolvent, Should I Stop Trading Immediately?

Not always. Trading may continue briefly if there is a credible, documented plan to restore solvency and no further creditor prejudice. This decision should be evidence-based.