Answer to Question #217416 in Economics for Tammy

Question

You are a consultant of ABC company . Discuss how

You advice the board of directors on the management of

winding up of their bankrupt company

Answer 1

Voluntary administration tries to resolve the company's insolvency in the best way possible. A qualified person (they must be a registered liquidator) is appointed as voluntary administrator to try and bring the company back to solvency.

If it's not possible to save the company, then the voluntary administrator's job is to decide the best course of action. This can lead to a better return than if the company was put into liquidation.