Rangers have formerly entered administration following a legal battle with HM Revenue and Customs (HMRC) at the Court of Session in Edinburgh.
The Glasgow club had served notice of its intention to go into administration on Monday but their hands were forced by HMRC who subsequently applied to the courts to have the placed in administration in a bid to control the insolvency process.
Lord Menzies imposed a deadline of 3.30pm for Rangers to appoint an administrator and the reigning Scottish Premier League champions swiftly confirmed they had retained the services of Duff and Phelps.
By going into administration Rangers will automatically incur a ten-point penalty from the SPL.
Rangers are currently awaiting a tax tribunal decision over the bill and penalties, totalling STG49million, with the HMRC claiming the unpaid tax bill relates to its use of Employment Benefit Trusts (EBTs).
Owner Craig Whyte believes the tax liability could reach as high as £75million and he feels the best outcome would be to secure a creditors agreement to keep the club trading.
In a statement on the club's official website, Whyte said: "The club did not want nor anticipate having to take this course of action today but had no option.
"We had hoped that continued dialogue with HMRC would mean that a decision on administration would not have to be taken for 10 days while all other avenues were explored.
"Due to its cost structure, the club has been loss making for many months.
"This situation has resulted in increasing liabilities and the club has been in discussion with HMRC regarding these liabilities.
"These liabilities combined with the threat of the outcome of the first tier tax tribunal left the club no option but to formally restructure its financial affairs.
"It remains our firm belief that the club's future can be secured and we hope this period of administration will be as short as possible.
"As chairman and a Rangers fan, it is very painful to see the club being deducted 10 league points but I would urge all Rangers supporters to rally round Ally McCoist and the team in these difficult times."
Rangers are due to host Kilmarnock in the SPL on Saturday but the game has been placed in jeopardy due to the uncertainty of the police being paid.
"We are seeking an urgent meeting with the administrators to ensure that any payment for policing costs at future Rangers games is guaranteed," a statement from Strathclyde Police read.
"Until we have such a guarantee we would not be in a position to commit public resources to policing an event unless we had a reassurance that our costs would be met."