As a legal concept, administration is a procedure under the insolvency laws of a number of common law jurisdictions. It functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. The process – in the United Kingdom colloquially called "under administration" – is an alternative to liquidation, or may be a precursor to it. Administration is commenced by an administration order. A company in administrative receivership is operated by an administrator (as interim chief executive with custodial responsibility for the company's assets and obligations) on behalf of its creditors. The administrator may recapitalize the business, sell the business to new owners, or demerge it into elements that can be sold and close the remainder.
Administrators are required to be registered liquidators since they have broad powers to deal with company property. The appointment of an administrator "freezes" any legal proceedings against the company, and control of the company is given entirely to the administrator. Directors of the company are prohibited from acting in their capacity as directors for the duration of the administration, wile administrators are personally liable for any debts incurred by the company in the course of the administration.
- Australian Securities & Investments Commission (5 October 2016)។ "Corporations Act 2001: Volume 1, No. 50; Compilation No. 73"។ C2016C00922។ Federal Registrar of Legislation។ https://www.legislation.gov.au/Details/C2016C00922។ បានយកមក 30 November 2016។