Define: Administration

Administration
Administration
What is the dictionary definition of Administration?
Dictionary Definition of Administration

Administration is the process of managing and organizing the operations and activities of an organisation or government. It involves making decisions, implementing policies, and overseeing the day-to-day functions to ensure the smooth running and success of the entity. This can include tasks such as planning, budgeting, staffing, and coordinating resources to achieve the goals and objectives of the organisation.

Full Definition Of Administration

Administration is a legal process that allows a company or organisation to be restructured or wound up in an orderly manner. It is typically used when a company is facing financial difficulties and is unable to pay its debts.

The administration process is initiated by a court order, which appoints an administrator to take control of the company’s affairs. The administrator’s primary duty is to act in the best interests of the company’s creditors as a whole, with the aim of achieving a better outcome than if the company were to be liquidated immediately.

During administration, the administrator has the power to manage the company’s operations, negotiate with creditors, and make decisions regarding the company’s assets. They may also propose a restructuring plan, which could involve selling parts of the business, renegotiating contracts, or seeking new investment.

The administration process provides the company with a temporary reprieve from legal actions by creditors, giving it time to stabilize its financial situation. It also provides a platform for negotiations with creditors, allowing for a potential compromise or arrangement to be reached.

Once the administration process is complete, the company may either be returned to the control of its directors, if a restructuring plan is successful, or be placed into liquidation if no viable solution is found. In liquidation, the company’s assets are sold off to repay its creditors, and the company is ultimately dissolved.

Overall, administration is a legal tool that aims to protect the interests of both the company and its creditors, providing an opportunity for financial recovery or an orderly wind-up process.

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Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March 2024.

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