Prepare an operating handover before an administration decision

Financial figures do not explain every immediate dependency

You are discussing voluntary administration with a registered insolvency practitioner. Alongside the financial records, explain how the business actually operates from day to day. Key contacts, essential services and urgent operational commitments may be held in different people's heads. A factual handover map helps the practitioner assess the position without treating a possible appointment as permission to continue every activity unchanged.

Identify the immediate dependencies

Imagine a food distribution business relying on refrigeration, delivery scheduling and a small number of warehouse staff. List the relevant service providers, responsible contacts and known immediate issues. Keep the information specific. A general statement that operations can keep running does not explain an expiring maintenance arrangement, a failed vehicle or a service provider already refusing further work.

Understand the control question

ASIC explains that a voluntary administrator takes control of the company and assesses its future. Ask the practitioner what information they need and how decisions would be handled if appointed. Do not promise staff or suppliers that existing directors will continue authorising every transaction, or represent an initial consultation as an appointment that has already changed the company's control.

Source: ASIC: Voluntary administration, a guide for creditors

Map authorised system access

Identify important accounting, payroll, ordering and scheduling systems and who properly controls access. Ask about secure arrangements for any necessary handover. In the distribution example, the delivery schedule may be essential to understanding customer obligations. Do not circulate passwords or change permissions indiscriminately; follow the appropriate authority and preserve the records rather than altering them for presentation.

Flag commitments without making new promises

List jobs, deliveries and service issues requiring a prompt decision, with the relevant contracts and current status. Distinguish what has been agreed from requests still pending. Obtain advice about further commitments while the company's financial position is assessed. The handover should reveal operational risks, not quietly resolve them by promising spending or performance the company may be unable to support.

Keep the map current for the decision

Update material changes and give the practitioner accurate contact details through the agreed channel. Retain the version supplied and any requested follow-up. An operational handover does not determine whether administration is appropriate. It gives the qualified adviser a clearer picture of what would need attention alongside the money, assets and creditor claims.