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Characteristics of Companies in Voluntary Administration: An Empirical Review - Clayton

Published: 10 June 2009

Presenters: Abe Herzberg and Mark Bender, Business Law and Taxation Department

Voluntary administrators play a central role in the voluntary administration (VA) scheme of the Corporations Act. Amongst other things they must report to creditors the results of their investigations into the company's financial position and circumstances. They must also recommend whether it is in the creditors' interests for the company to be immediately wound up; or to enter into a compromise or arrangement with creditors in the form of a deed of company arrangement (DOCA); or that the VA be terminated and return control to the company's directors and shareholders.

This paper analysed a sample of voluntary administrators' reports to creditors and found that the administrators' recommended outcome -- liquidation or DOCA -- was strongly associated with certain non-financial factors, (such as industry type, duration of the VA, reasons for business failure and expected returns to unsecured creditors including employee creditors).

Time: 12.15 to 1.15 pm
Date: Friday 12 June, 2009
Venue: Clayton campus, Sir George Lush Room, Building 3A, Ground Floor.

For further information contact:
Name: Anne Mulcahy (Department of Business Law and Taxation)
Telephone: +61 3 9903 4062
Email: anne.mulcahy@buseco.monash.edu.au