Can you restructure without losing control of the business?

The owner fears handing over the keys

A café operator wants help with accumulated debts but worries that any restructuring discussion means surrendering the business immediately. A friend says directors always stay in charge. Both assumptions are too broad. The operator needs an explanation of the actual process, eligibility and decisions that would require another person's consent.

Name the process being proposed

Ask whether the adviser is discussing private creditor negotiations, statutory small business restructuring, voluntary administration or another arrangement. A marketing description such as business rescue does not identify the legal process.

Request the proposed practitioner role, costs and timing. An introductory meeting is different from an appointment, and the owner should know what documents would make the next step effective.

Understand retained control under SBR

ASIC explains that eligible companies retain director control during small business restructuring while developing a plan with a restructuring practitioner. This is a formal process with conditions, not permission to manage every transaction as before.

ASIC also distinguishes ordinary-course activity from transactions requiring practitioner consent. Ask specifically about proposed asset sales, old debt payments and distributions rather than assuming existing banking access supplies the necessary authority.

Source: ASIC - Small business restructuring and the restructuring plan

Separate ownership from management authority

An investor taking shares, a lender requiring consent and an insolvency appointment can affect different aspects of control. Have each proposal explained on its own terms. Keeping shares does not answer who may authorise company decisions.

List the actions the business must take during the next month. Ask who would approve purchasing, staffing, asset dealings and creditor communications under the proposed arrangement. Operational clarity matters more than a reassuring label.

Choose a workable process, not a preferred slogan

Provide accurate financial information so qualified advisers can assess eligibility and alternatives. Explain any urgent creditor action and whether continued trading is sustainable. Avoid delaying advice solely to preserve an appearance of control.

Get the responsibilities in writing and brief staff on the confirmed position. The practical aim is a lawful recovery plan that the business can carry out, with decision-making authority understood before commitments are made.

Ask who can authorise each important decision

Identify the formal process and qualified practitioner.

Check eligibility and consent requirements.

Make a short responsibility list for the decisions needed during the proposed restructure.

Contact CRP for help coordinating restructuring information and qualified professional advice.