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239I: Appointment by company
or “How a company can appoint an administrator when it's in financial trouble”
You could also call this:

“Liquidator or interim liquidator can appoint an administrator for a struggling company”

If a company has a liquidator or interim liquidator, they can appoint an administrator if they think the company can’t pay its debts or might not be able to soon. The liquidator or interim liquidator needs to write down this appointment and include the date it happens.

The liquidator or interim liquidator can choose to be the administrator themselves, but they need to get permission first. They can either ask a court for permission, or if they’re a liquidator (not an interim liquidator), they can ask the company’s people who are owed money (creditors) to agree in a meeting.

There’s a rule that the liquidator or interim liquidator can’t pick someone they work with closely, like a business partner or someone who works for them, to be the administrator. But if the creditors agree in a meeting, then it’s okay.

If an administrator is appointed to a company that’s already being closed down (in liquidation), they can ask a court to stop the liquidation process. They do this by applying for an order under section 250.

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Next up: 239K: Appointment by secured creditor

or “A secured creditor can appoint an administrator when their charge becomes enforceable”
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Part 15A Voluntary administration
Appointment of administrator

239JAppointment by liquidator or interim liquidator

  1. The liquidator or interim liquidator of a company may appoint an administrator if he or she thinks that the company is insolvent or is likely to become insolvent.

  2. The appointment must be in writing and must state the date of the appointment.

  3. The liquidator or interim liquidator may appoint himself or herself administrator if he or she first obtains—

  4. the permission of the court; or
    1. in the case of a liquidator but not an interim liquidator, the approval of the company's creditors in the form of a resolution passed at a meeting of the creditors.

      1. A liquidator or interim liquidator must not appoint as administrator a person who is the liquidator's or interim liquidator's business or professional partner, employer, or employee, unless the appointment has been approved by the company's creditors in the form of a resolution passed at a creditors' meeting.

      2. An administrator who is appointed to a company already in liquidation may apply to the court for an order under section 250 terminating the liquidation.

      Compare
      • Corporations Act 2001 s 436B (Aust)
      Notes
      • Section 239J: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).