Flowchart 5: Administrator in a voluntary administration

This flowchart and the explanatory text should be read with Information Sheet 29 External administration, controller appointments and schemes of arrangement: Most commonly lodged forms (INFO 29).

Unless otherwise permitted by the Corporations Act, a person must not act as a voluntary administrator unless they are a registered liquidator: section 448B(2).

Flowchart 5: Administrator in a voluntary administration

Info 29 Flowchart 5 Published March 2020

 

* ASIC PNW = ASIC published notices website.

Explanation of Flowchart 5: Administrator in a voluntary administration[1]

Step Form or notice Notes

1

Form 505
Notification of appointment or cessation of an external administrator (appointment)

Legislation: section 450A(1)(a) and regulation 1.0.3A. Form 505 is an ASIC-approved form.

Requirement: Lodgement is mandatory.

Tick-a-box choice (Details of appointment): Administrator.

Lodgement: The administrator must lodge by the end of the next business day after appointment. Online lodgement is preferred.

Company status:[2] If this is the first external administrator or controller appointed to the company, the company status will change from REGD to EXAD after processing of Form 505 and will create a new appointment for the voluntary administrator.

and …

ASIC published notices website[3]
Notice of appointment of an administrator (or combined notice with first meeting)

Legislation: section 450A(1)(b) and regulation 5.3A.07A.

Requirement: Publication is mandatory (can be combined with notice of first meeting: see Step 3, section 450A(1A)).

Publication: The administrator must publish the notice on the ASIC published notices website within 3 business days after appointment.

2

Form 531
Copy of declaration of relevant relationships and/or declaration of indemnities

Legislation: section 436DA(4A). Form 531 is an ASIC administrative form.

Requirement: Lodgement is mandatory.

Tick-a-box choice (Type of appointment): Administrator.

Lodgement: The administrator must lodge a copy of the declaration as soon as practicable after making the declaration. Online lodgement is required.

Note 1: We consider that 'as soon as practicable' should not be more than 2 business days after making the declaration.

Note 2: If a replacement declaration is made, the liquidator must also lodge the updated declaration: section 436DA(6A).

3

ASIC published notices website
Notice of first meeting of creditors of company under
administration (or combined notice with first meeting)

Legislation: section 436E(3)(b) and regulation 5.3A.03A.

Requirement: Publication is mandatory (can be combined with notice of appointment: see Step 1).

Publication: The administrator must publish the notice on the ASIC published notices website at least 5 business days before the meeting.

and …

Form 5011
Copy of minutes of meeting (s436E meeting)

Legislation: section 436E and Rule 75-145(1)(c) of the Practice Rules. Form 5011 is an ASIC administrative form.

Requirement: Lodgement is mandatory.

Tick-a-box choice (Details of minutes of meeting): ‘Yes’, the minutes are being lodged for a meeting convened under s436E, or s439A of the Corporations Act 2001.

Lodgement: The person presiding at the meeting must lodge the minutes of the meeting of creditors within 10 business days after the end of the meeting. Online lodgement is preferred.

Note: Under Rule 75-145(4), a record of persons present at a meeting must be kept as part of the minutes. The form provides further guidance about this requirement.

4

Form 507
Report on company activities and property (ROCAP
Part A)

Legislation: section 438B(2A). Form 507 is an ASIC-approved form.

Requirement: Lodgement is mandatory

Tick-a-box choice (Reason for report): Appointment of administrator – s438B(2).

Lodgement: The administrator must lodge within 5 business days after receipt of the report. Online lodgement is preferred.

5
(contingent)

Administrator replaced at first meeting

Form 505
Notification of appointment or cessation of an external administrator (cessation)

Legislation: section 436E(4)(a). Form 505 is an ASIC-approved form.

Requirement: Lodgement is not mandatory; however, the former administrator should lodge to cease the role if this circumstance arises (if the administrator is replaced).

Tick-a-box choice (Ceasing, resignation or removal): Cease (or ‘Cessation, resignation or removal of administrator’ on paper form).

Lodgement: The former administrator should lodge as soon as possible. Online lodgement is preferred.

and …

Form 5602
Annual administration form

Legislation: section 70-5(3) of Schedule 2. Form 5602 is an ASIC-approved form.

Requirement: Lodgement is mandatory, contingent on the circumstances arising (if the administrator is replaced).

Tick-a-box choice (Details of appointment): Administrator.

Lodgement: The former administrator must lodge within 3 months after the end of the 'administration return year', which is the period of 12 months beginning on the day of appointment and each subsequent period of 12 months.

The administrator must also give notice to the company that a return has been lodged when next forwarding a report, notice of meeting, or notice of call or dividend: section 70-5(6)(b).

Online lodgement as structured data is required.

Note: See the additional guidance to INFO 29 for information on lodging Form 5602 where a replacement registered liquidator is appointed.

and …

Form 505
Notification of appointment or cessation of an external administrator (appointment)

Legislation: section 436E(4)(b) and Rule 70-60(2) of the Practice Rules. Form 505 is an ASIC-approved form.

Requirement: Lodgement is mandatory, contingent on the circumstances arising (if the administrator is replaced).

Tick-a-box choice (Details of appointment): Administrator.

Lodgement: The new administrator must lodge before the end of the next business day after the appointment. Online lodgement is preferred.

6
(contingent)

Proposal made for a resolution without a meeting

Form 5022
Outcome of proposal to creditors or contributories

Legislation: section 75-40 of Schedule 2 and Rules 75-130 (creditors) and 75-135 (contributories) of the Practice Rules. Form 5022 is an ASIC-approved form.

Requirement: Lodgement is mandatory, contingent on whether a resolution is requested without a meeting of creditors or contributories.

Lodgement: The administrator must lodge within 5 business days of the outcome being known. Online lodgement is required.

7

Form 530
Copy of administrators report, statement and notice of
s439A meeting

Legislation: Rule 75-225(4) of the Practice Rules. Form 530 is an ASIC administrative form.

Requirement: Lodgement is mandatory.

Lodgement: The administrator must lodge a copy of the notice of the s439A meeting, the administrator's report (under Rule 75-225(3)(a)) and the statement (under Rule 75-225(3)(b)) within 2 business days of the notice being sent to creditors.

Note: When lodging a supplementary report and statement, lodge as soon as practicable after the report and statement are sent to creditors.

8

ASIC published notices website
Notice of second meeting of creditors of company under administration

Legislation: Rule 75-40(3)(a) of the Practice Rules.

Requirement: Publication is mandatory.

Publication: The administrator must publish the notice on the ASIC published notices website at least 5 business days before the meeting is held.

and …

Form 5011
Copy of minutes of meeting (s439A meeting)

Legislation: section 439A and Rule 75-145(1)(c) of the Practice Rules. Form 5011 is an ASIC-administrative form.

Requirement: Lodgement is mandatory.

Tick-a-box choice (Details of minutes of meeting): ‘Yes’, the minutes are being lodged for a meeting convened under s436E, or s439A of the Corporations Act 2001.

Lodgement: The person presiding at the meeting must lodge the minutes within 10 business days after the end of the meeting. Online lodgement is preferred.

Note 1: The meeting is to be adjourned and reconvened if there is no quorum after 30 minutes: Rule 75-105(4). Minutes of the meeting with no quorum must be lodged: Rule 75-145.

Note 2: Under Rule 75-145(4), a record of persons present at a meeting must be kept as part of the minutes. The form provides further guidance about this requirement.

9
(contingent)

Meeting for eligible employee creditors convened

ASIC published notices website
Notice of meeting of eligible employee creditors of company under administration

Legislation: section 444DA and Rule 75-40(3)(a).

Requirement: Publication is mandatory.

Publication: The administrator must publish the notice of meeting on the ASIC published notices website at least 5 business days before the meeting is held.

and ...

Form 5011
Copy of minutes of meeting (eligible employee creditors)

Legislation: section 444DA and Rule 75-145(1)(c) of the Practice Rules. Form 5011 is an ASIC administrative form.

Requirement: Lodgement is mandatory, contingent on the circumstances arising (if a meeting for eligible employee creditors is convened).

Tick-a-box choice (Details of minutes of meeting): ‘No’, the minutes are not being lodged for a meeting convened under s436E, or s439A of the Corporations Act 2001.

Lodgement: The person presiding at the meeting must lodge the minutes within 1 month after the end of the meeting. Online lodgement is preferred.

Note 1: The meeting is to be adjourned and reconvened if there is no quorum after 30 minutes: Rule 75-105(4). Minutes of the meeting with no quorum must be lodged: Rule 75-145.

Note 2: Under Rule 75-145(4), a record of persons present at a meeting must be kept as part of the minutes. The form provides further guidance about this requirement.

10
(contingent)

Section 438D report required for possible misconduct

Submit
insolvency initial statutory report (under sections 533(1), 438D(1) or
422(1)
of the Corporations Act 2001)

Legislation: section 438D.

Requirement: Lodgement is mandatory, contingent on the circumstances arising (if it appears to the administrator that a relevant person may have committed an offence in relation to the company, been negligent, or otherwise engaged in misconduct).

Tick-a-box choice (Under what provision are you lodging this report): Section 438D (administrator reports).

Lodgement: The administrator must lodge as soon as practicable after forming an opinion. Online lodgement via the ASIC Regulatory Portal is preferred.

Note 1: A freeform written report can be lodged to comply with section 438D, but submitting an insolvency initial statutory report is preferred.

Note 2: See Regulatory Guide 16 External administrators: Reporting and lodging (RG 16) for more details.

11
(contingent)

Administration is greater than 1 year

Form 5602
Annual administration return

Legislation: section 70-5(3) of Schedule 2. Form 5602 is an ASIC-approved form.

Requirement: Lodgement is mandatory, if administration continues for more than 1 year from appointment.

Tick-a-box choice (Details of appointment): Administrator.

Lodgement: The administrator must lodge within 3 months after the end of the 'administration return year', which is the period of 12 months beginning on the day of appointment and each subsequent period of 12 months.

The administrator must also give notice to the company that a return has been lodged when next forwarding a report, notice of meeting, or notice of call or dividend: section 70-5(6)(b).

Online lodgement as structured data is required.

12 (select one of Steps 12a–12c, as dictated by the resolution(s) passed at the meeting to decide the company’s future: section 439A):

12a
(deed of company arrangement)

Creditors resolve to execute a DOCA

The voluntary administration will proceed to a deed of company arrangement (DOCA). Refer to Steps 13 and 14 below and then go to Flowchart 6.

12b
(creditors’ voluntary winding up)

Creditors resolve the company be wound up

The voluntary administration will proceed to a creditors’ voluntary liquidation. Refer to Steps 13 and 14 below and then go to Flowchart 7.

12c
(administration ends)

Creditors resolve the administration should end

Form 5053
Notice that administration of a company has ended

Legislation: section 435C(2)(b) and 439C(b), and Rule 70-60(3) of the Practice Rules. Form 5053 is an ASIC-approved form.

Requirement: Lodgement is mandatory, contingent on the circumstances arising (if administration ends).

Lodgement: The administrator must lodge as soon as practicable after the resolution is passed. Online lodgement is preferred.

Note: We consider that 'as soon as practicable' should be no more than 2 business days after the resolution is passed.

Company status: If this is the only external administration to the company, the company status will change from EXAD to REGD after processing of Form 5053.

13
(contingent)

Voluntary administrator will not be deed administrator or liquidator

Form 505
Notification of appointment or cessation of external administrator (cessation)

Legislation: section 499(2A)(a). Form 505 is an ASIC-approved form.

Requirement: Lodgement is not mandatory; however, the administrator should lodge to cease the role if this circumstance arises (if deed administrator or creditors’ voluntary liquidator is not the same person as the voluntary administrator).

Note: There is no requirement for a voluntary administrator to lodge a Form 505 ceasing their voluntary administrator appointment when the same person becomes the deed administrator or creditors’ voluntary liquidator.

Tick-a-box choice (Ceasing, resignation or removal): Cease (or ‘Resignation or removal of administrator’ on paper form).

Lodgement: The voluntary administrator should lodge as soon as practicable. Online lodgement is preferred.

Note: We consider that 'as soon as practicable' should be no more than 2 business days after ceasing.

14

Form 5603
End of administration return

Legislation: section 70-6(2) of Schedule 2. Form 5603 is an ASIC-approved form.

Requirement: Lodgement is mandatory.

Lodgement: The administrator must lodge within 1 month after the end of the external administration.

The administrator must also give notice to the company that a return has been lodged, if requested to do so in writing: section 70-6(4).

Online lodgement as structured data is required.

More information

For more information on external administration, visit www.asic.gov.au/insolvency or contact ASIC on 1300 300 630 or online at www.asic.gov.au/question.



[1] Types of forms: Information is lodged with, and received by, ASIC for recording on the company register as ‘forms’. Forms fall into one of the following categories:

  • a prescribed form, which is a form prescribed in Schedule 2 to the Corporations Regulations, or
  • an ASIC-approved form, which is a form that is not prescribed, but is one that ASIC may approve under section 350 of the Corporations Act and section 100-6 of Schedule 2, or
  • an ASIC administrative form, which is a form that is neither prescribed nor approved, but is one that has been given an administrative form number by ASIC for the purpose of identifying the type of information being lodged (e.g. Form 5011).

[2] Company status: Certain form lodgements cause company status changes. These may not apply if a company is subject to another external administration. The status of a company is recorded on ASIC’s database as:

  • REGD – registered
  • EXAD – under external administration and/or controller appointed
  • SOFF – strike-off action in progress
  • DRGD – deregistered

[3] ASIC published notices website: An ASIC-hosted website for the publication of notices, including insolvency and external administration-related notices, required to be published in the prescribed manner under Part 5.1, 5.3A, 5.4, 5.4B, 5.4C, 5.5, 5.6, 5.8 or 5A.1 of the Corporations Act, Schedule 2, the Practice Rules or lodged in accordance with regulation 5.6.75 of the Corporations Regulations.

Last updated: 30/03/2020 08:29