Grounds for an appointment 

The judge will decide whether or not to appoint an administrator by applying the test:
Is it in the best interests of the owners having regard to the scheme
and intent of the Act?

Some of the factors to be considered when deciding whether to appoint an administrator are:

1.	Whether a demonstrated substantial inability to manage the corporation has been established;
2.	Whether substantial misconduct or mismanagement or both in relation to the affairs of the corporation has been demonstrated;
3.	Whether there is a struggle within the corporation among competing groups such as to impede or prevent proper governance of the corporation.
4.	Whether only the appointment of an administrator has any reasonable prospect of bringing to order the affairs of the corporation.

These are the four factors that the applicants must prove exist if they will be successful in their application.

When an administrator is appointed
The judge will appoint an administrator for a set period, usually one or two years, set his hourly compensation and state when he is to make a report on his progress to the courts. The judge may also set restrictions on his powers.

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