Thursday, 15 April 2021
"In theory [voluntary administration] is a restructuring tool that's available to companies that has the overarching purpose of maximising the chances of a company continuing into the future."
In practice, Kate suggested that it is typically after consultation with insolvency practitioners that Directors will be more open to considering the voluntary administration process. "The Board will sit down and assess the financial position of the company and say, is the company solvent? Is it insolvent? And what are the options available to them?"
Kate highlighted, where there are stressors in an organisation, Boards should not shy away from accepting voluntary administration as a viable contingency plan.
As an additional piece of advice for Boards, Kate commented, "Planning early and getting help early will always give you the runway to set your company up for success. And sometimes voluntary administration can be the most powerful tool to set your company up for future success."
Noting that only 7.6% of registered liquidators in Australia are female, Helga asked Kate for her advice to women working in environments where they are underrepresented.
"My advice is women need to support women, because we need to stand united and not divided, and we need to pave that path for others coming behind us. It's so incredibly important to bring our junior women through in our organisations and that is starting with the recruitment process from day one, when we're looking for graduates. It's about looking at what we are doing that's building in the unconscious biases into our processes. Because if we don't build that pipeline, we're never going to be able to fill the top."
Reflecting on her own experiences and her role in supporting women, Kate commented, "I'm very lucky that I've been supported by some incredibly amazing women who have come through my organization before me and I'd like to think that I'm now doing that exact same thing, with the women coming behind me."
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