What happens to me if the company goes into administration?

Published on : 2nd March, 2021 | Updated on : 27th January, 2025

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What Does Going Into Administration Mean?

Written ByGary Weber

Turnaround & Insolvency Manager (South)

Gary has been with KSA since late 2010 and is now overseeing the work of all our Regional Managers as well as covering his own patch of the South East. He is passionate about helping companies having been an owner and a director of a number of businesses in industries including pubs, catering, road haulage, and retail. Gary drives our rescue work throughout central and west London, Surrey, W.Sussex, Berks., Bucks. and Oxon.

Gary Weber

Can I be a director of a company in the future if this company goes into administration?
If I have provided personal guarantees will these be called in if the company goes into administration?
Will I be disqualified as a director is our company goes into administration?

What happens to me if the company goes into administration?

Answering simply, nothing. However, as a director of the insolvent company, if you have not acted properly, as you go through the insolvency process, you may face personal issues in the future.

When administrators are appointed then the directors’ powers cease. They are still responsible for their previous actions though. Usually the administrators will either sell the business quickly or if they trade the company in administration they will make the directors redundant as employees. So you will be sent home.

Can I be a director of a company in the future if this company goes into administration?

Yes, you can be a director of as many companies as you would like. You may be part of a new company that is going to buy the business from the administrators. In which case you must get personal legal advice on conflicts of interest.

Make sure that the company name is acquired before re-using it. And it is obvious, what you shouldn’t do is to act irresponsibly when acting as a director of the old company and then set up another company and do the same silly things again.

Facts:

The law requires directors to keep up-to-date financial information and to understand the financial position of the company. If you fail to do this, legal action may be faced by a future administrator or liquidator.
Taking cash out of the company as drawings (not dividends) means that you owe the company money. This becomes an asset, a debtor and the administrators or future liquidators must collect that money or do a deal.

If I have provided personal guarantees will these be called in if the company goes into administration?

The answer is yes. It is very likely that if the company enters into administration, if you have provided security for company debts in the form of a personal guarantee , then this may be called in. If you’re in any doubt about this please call us . We can help directors with any related problems or queries.

Will I be disqualified as a director is our company goes into administration?

NO – as long as you have acted suitably, rapidly and responsibly . If you haven’t, and you knew the company was in serious financial difficulty then YES you may be disqualified…Take back control and protect yourself by asking for expert free help today! – call 0800 9700539

By failing to act and making creditors debts worse or running the company’s cash down to £0 to pay yourself, when other creditors are not being paid; likewise if you are taking some of the firms assets which do not belong to you, legal action by the future liquidator may be faced. But to do that, you would have to be extremely silly!

If you are thinking that the business will soon run out of cash then you must take advice now. Take back control and call us on (0800) 970 0539

Jetline Travel in Administration After It Stopped Trading

10th April, 2025 in Travel and Transport What Does Going Into Administration Mean?

In March, Jetline Cruise's parent firm, Jetline Travel, which was established in 2000, stopped trading as an ATOL-protected travel agency. According to reports it has now gone into administration.The company operated under a number of brand names at the time, including Save on Sun, Bargain Late Holidays, Best Priced Holidays, Cruise and More, and Elegant Getaways.Jetline Travel reported an operational profit of £655,000 and a turnover of £28.1 million in 2023. 5,000 customers—the majority of whom had reservations for cruise vacations—were impacted when the company stopped operating as an ATOL operator in March.Due to a "breach of contract" with Jetline, a number of well-known cruise reservations with companies like Princess, Cunard, and Holland America have since been cancelled. The Civil Aviation Authority (CAA) released advice for impacted passengers in early March: "If you are currently abroad and have a scheduled flight e-ticket, the flight is still valid for your return trip." Kindly check in with the airline as usual. We are obtaining data from the business and will shortly offer more instructions on how to make a claim for reservations that are ATOL-protected"Bookings that solely include lodging, non-flight packages, or cruises without flights are not covered by the ATOL scheme, the CAA confirmed."Jetline Travel Ltd. acted as an agent for other ATOL holders," they continued. Jetline's ATOL does not safeguard these reservations. To find out who is providing protection, look at the 'Who is protecting your trip?' section on your ATOL Certificate. Get in touch with the ATOL holder directly if they are still operating.Jetline is represented in the travel industry by the Advantage Travel Partnership, whose representative apologised for the incident. They expressed their sadness at Jetline Travel's closure to The Independent. "Since 2015, they have been a valued member, and we are thinking about the impacted consumers and employees."Anyone who has a cruise-only trip booked, or one with just accommodation that doesn't have flights included, are not protected under ATOL.

Read

Jetline Travel in Administration After It Stopped Trading

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What happens to me if the company goes into administration?

Table of Contents

Can I be a director of a company in the future if this company goes into administration?

If I have provided personal guarantees will these be called in if the company goes into administration?

Will I be disqualified as a director is our company goes into administration?

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