Special administrations

Special administration is unique to the CATSI Act.

It means the Registrar can take early action when a corporation faces problems with finances or governance. 

The Registrar can appoint a suitable and qualified person to look after or fix problems such as:

• financial troubles
• the corporation has stopped running properly
• the structure of the corporation needs to change.

The aim is to return control of a better corporation back to its members.

Learn more about going through special administration.

Only the Registrar can place a corporation under special administration. 

Directors, members, funding agencies, creditors and employees can ask the Registrar to place a corporation under special administration. The Registrar does not grant all requests for a special administrator to be appointed.

Grounds for special administration

The grounds for special administration are set out in the CATSI Act. 

If the corporation is government-funded, the Registrar considers the views of key funding agencies.

A corporation can be placed under special administration if a voluntary administrator or a receiver has been appointed.

A corporation can’t be placed under special administration if:

• it’s in the process of being wound up 
• a liquidator has been appointed.

Show cause notices

The Registrar usually gives the corporation a chance to explain why it should not be placed under special administration. This is called a 'show cause' procedure. The Registrar can bypass this to protect public money or essential services.

After the corporation replies to the show cause notice, the Registrar may appoint a special administrator.

Starting a special administration

The Registrar will send a letter to the corporation, along with a Notice of Determination and Appointment. The letter will tell the corporation:

• that the corporation will be placed in special administration
• when the special administration will start and end
• who the special administrator will be
• how the corporation can ask for the decision to be reviewed.

The special administrator will contact the corporation after this.

During special administration

The special administrator takes control of the corporation when appointed. The directors and secretary are no longer officers of the corporation. The directors and secretary cannot use or deal with the corporation’s property (unless the special administrator gives them permission).

While under special administration, the corporation continues doing its normal work unless it’s insolvent. If the corporation is insolvent the special administrator may stop trading for a while.

Role of the special administrator

The special administrator’s tasks include:

• securing and managing the corporation’s assets
• reviewing financial and operational activities
• meeting with funding agencies to secure funding and confirm service delivery expectations
• contacting creditors to arrange debt payments
• improving internal business and governance practices
• consulting with an advisory group
• communicating progress through newsletters and meetings
• reviewing and updating the corporation’s rule book and member registers.

The special administrator works independently. They consult with members, former directors, funding agencies, creditors, employees and other interested parties.

Advisory groups

The special administrator works with advisory groups of members, former directors and other interested parties. The group advises on the corporation’s future direction. 

Communication

To keep everyone informed, the special administrator:

• holds information meetings 
• sends newsletters.

This keeps everyone up to date on the special administration’s progress and the future of the corporation.

Membership

People can apply for membership during special administration. The special administrator decides on membership applications. They often consult the advisory group for this.

Paying the special administrator

The Registrar sets the special administrator’s costs. The Registrar may:

• cover the special administrator’s costs
• require the corporation or a related organisation to pay costs, in full or in part.

Complaints about special administrators

If you’re not satisfied with the special administrator’s actions, you can:

• get advice from the Registrar’s office 
• lodge a complaint.