Which of the following is a consequence of being in administration?

Being in administration grants a moratorium, which is a significant aspect of this process. The moratorium effectively protects the company from legal actions taken by creditors during the administration period. This means that creditors cannot initiate or continue legal proceedings to enforce debts, allowing the company the necessary breathing space to restructure and hopefully return to profitability. The aim of entering administration is to rescue the business or its value, and the moratorium is a crucial tool that helps achieve this by stabilizing the company's finances and operations while plans are put in place.

The other options do not accurately reflect the consequences of being in administration. For instance, directors do not retain all their powers during this process; rather, their powers can be restricted as the administrator takes over control of the business. Creditors are also not satisfied immediately, as the administration process often involves negotiation and restructuring of debts. Additionally, while employment contracts may be affected during administration, they can indeed be terminated if necessary, contrary to the assertion that they cannot be terminated.