A liquidation brings to an end the affairs of a company. All assets must be realised, stopping or selling of its business and then distributing those funds fairly among its creditors and distributing any surplus to its shareholders. A creditors' voluntary liquidation is a liquidation initiated by the company.
The four main types of liquidation -
* Creditors Voluntary Liquidation (CVL)
Frequently Asked Questions About Liquidations
What should I do if I feel the company is insolvent?
Seek advice, we can help you with your obligations.
How is a company placed into liquidation?
95% of the shareholders of a company can resolve to appoint a liquidator to the company.
A creditor who is owed more than $2,000 can apply to the courts to wind up the company and have a liquidator appointed
What is the cost of putting a company into liquidation?
Depending on the value of the company assets it may cost you nothing more to liquidate. If there are no assets we can obtain a quote for you.
What happens when a liquidator is appointed?
All control of the company is passed to the Liquidator. The director has no further power in the affairs of the company. The director has obligations to assist the liquidator with their enquiries and required paperwork such as a Report As To Affairs. The liquidator is responsible for the realisation of assets and fair distribution of funds as governed by the Corporations Act.
Am I liable for the company debts?
The director is only liable for company debts if they have signed personal guarantees or have been issued with a directors penalty notice which has expired. The director may also be liable for insolvent trading.