As a legal concept, administration is a procedure under the insolvency laws of a number of

common law jurisdictions, similar to bankruptcy in the United States. It functions as a rescue
mechanism for insolvent entities and allows them to carry on running their business. The process –
in the United Kingdom colloquially called "under administration" – is an alternative to liquidation, or
may be a precursor to it. Administration is commenced by an administration order. A company in
administrative receivership is operated by an administrator (as interim chief executive with custodial
responsibility for the company's assets and obligations) on behalf of its creditors. The administrator
may recapitalize the business, sell the business to new owners, or demerge it into elements that can
be sold and close the remainder. Most countries distinguish between voluntary (board-decided) and
involuntary (court-decided) receivership. In voluntary administrative receivership, the administrator is
appointed by the company directors. In involuntary administrative receivership, the administrator is
appointed by a judicial court. The legal terms for these processes vary from country to country, and
the processes may overlap.