Going through special administration

Once a corporation has been placed under special administration, the Registrar will appoint a special administrator to resolve financial and organisational problems. The special administrator is a qualified, independent person who takes control and runs a corporation.  

How a special administration works

Special administration aims to get the corporation to financial and organisational health.

Once this is achieved control is given back to the members.  

Special administration usually takes no more than:

  • 6 months for a simple special administration
  • 12 months for a more complex special administration. 

Learn more about how special administration works.  

Starting a special administration

The Registrar might appoint a special administrator to help fix:

  • short-term financial troubles  
  • issues from poor business practices
  • poor governance  
  • a weak organisational structure.

The Registrar usually gives a corporation time to respond before starting special administration through a ‘show cause’ procedure. But the Registrar can place a corporation under special administration without a show cause procedure if this will:

  • protect public money
  • prevent an interruption to essential services.

Directors and members can also write to the Registrar and request the corporation to be placed under special administration.

If a member or director disagrees with the Registrar’s decision for special administration, they can ask for a review within 28 days of getting the notice. 

Ending special administration

When a corporation can be handed back to the members, the special administrator will appoint new directors.

They’ll start their duties once special administration ends.

If special administration can’t fix the corporation’s problems, an application can be made to the court to place the corporation into liquidation by:

  • the special administrator
  • the Registrar
  • a director, creditor or member – if at the end of the special administration. 

More information

Fact sheets

Read our fact sheet about special administration for directors and members.

Read our fact sheet about special administration for funding agencies, creditors and employees.

Policy statement

Read our policy statement on special administrations.

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