What happens after voluntary administration

After voluntary administration, the company’s creditors decide its future at a meeting usually held about five weeks after the appointment. There are three possible outcomes: the company enters a deed of company arrangement (DOCA) and continues on agreed terms; the company is wound up by a liquidator; or the administration ends and control returns to the directors. Which outcome is realistic depends on whether the business can be saved and what creditors would receive under each option.

The timeline to the decision

Before the decision meeting, the administrator gives creditors a report with an opinion on which option is in their interests, and why.

The three possible outcomes

Returning the company to its directors is the least common outcome, because a company usually enters administration when it is insolvent or likely to become insolvent.

If a deed of company arrangement is approved

1. The deed is signed. This must happen within 15 business days of the meeting, unless the court extends the time. If it is not signed in time, the company goes into liquidation.
2. A deed administrator is appointed, usually the person who was the administrator.
3. Creditors are bound. The deed binds creditors for the debts it covers, so they cannot pursue the company for those debts outside its terms.
4. The company performs the deed. This may mean contributions from future trading, the sale of assets, or a contribution from a third party.
5. The deed ends. When its terms are met, the deed ends and the company is released from the debts the deed covers.

Employee entitlements must keep the same priority they would have in a liquidation, unless eligible employees agree otherwise. See what happens to employees in voluntary administration.

If creditors vote for liquidation

The company is wound up straight away, and the administrator usually becomes the liquidator. The liquidator realises the company’s assets, investigates its affairs, reports to creditors and ASIC, and pays creditors in the order set by law. See creditors’ voluntary liquidation and DOCA vs liquidation.

What directors should plan for

• Personal guarantees. During the administration, a creditor generally cannot enforce a director’s personal guarantee without the court’s permission. That protection ends when the administration ends.
• Director penalties. If the administrator was appointed within 21 days of a non-lockdown director penalty notice, that penalty was remitted. Lockdown amounts and later notices are not. See voluntary administration and DPNs.
• Your proposal. A DOCA usually starts with a proposal from the directors or a third party. The stronger it is, the better the chance creditors prefer it to liquidation.

For the full process, see our voluntary administration guide and voluntary administration vs liquidation.

Common questions

What happens after voluntary administration?

Creditors vote at a decision meeting, usually held about five weeks after the appointment, on one of three outcomes: the company enters a deed of company arrangement, the company is wound up, or the administration ends and control returns to the directors.

How long does voluntary administration last?

Usually about five weeks to the decision meeting. The administrator generally has 20 business days to convene it (25 if the period covers Christmas or Easter), and the meeting is held within 5 business days after that. The court can extend these times.

What happens if creditors vote for a deed of company arrangement?

The company must sign the deed within 15 business days of the meeting, unless the court extends the time. If it is not signed in time, the company goes into liquidation. Once signed, the deed binds creditors for the debts it covers, and a deed administrator oversees it.

What happens if creditors vote for liquidation?

The company is wound up. The administrator usually becomes the liquidator, sells the company’s assets, investigates its affairs and pays creditors in the order set by law.

Do the directors get control back after a DOCA?

It depends on the terms of the deed. Many deeds return day-to-day control to the directors while the deed administrator oversees the payments the deed requires.

What happens to my personal guarantees after the administration ends?

During the administration, a creditor generally cannot enforce a director’s personal guarantee of the company’s debts without the court’s permission. That protection ends with the administration, so guarantees can be called on afterwards unless a deed deals with them.

Sources: Corporations Act 2001 (Cth) Part 5.3A, including sections 439A, 440J, 444B and 446A; ASIC, Voluntary administration: A guide for employees (INFO 75). This page is general information, not advice about your circumstances. Last reviewed: 16 October 2026.