Liquidation, what is it?
Liquidation occurs during the winding-up of a company, it involves the selling of assets by an independent person known as a liquidator. The liquidator is responsible for taking control of the company so that its operations can be finalised and creditors can be given a fair share of the money raised during the liquidation.
What does Insolvency Guardian do?
Insolvency Guardian provides affordable liquidations packages to Australian individuals and businesses. Our no-asset company liquidation packages can help you to successfully make it through the process of company liquidation. To talk to one of our liquidation consultants about these packages you can call us on 1300 60 70 60.
What are the signs that liquidation may be inevitable for your business?
- You are unable to pay your rent
- You are experiencing cash-flow problems
- Debtors are not paying their bills when they are due
- Business tax debts are beginning to pile up
- Inability to meet payment plan deadlines
- Your PAYG is overdue
- You have received a Directors Penalty Notice
When should I start liquidation?
Before you do anything you should call Insolvency Guardian today on 1300 60 70 60 to talk to one of our liquidation consultants. They will be able to determine what action you will need to take. Once you realise that your company is insolvent you need to take immediate action. The only step you need to take on your own is finding professional help. Once you have contacted Insolvency Guardian we will guide you through every step of the liquidation process.
Continuing to trade while you are aware that your company is insolvent is a breach of Insolvent Trading laws, a criminal offence with severe penalties. You will be shown the correct way to move forward, allowing you to take prompt and effective action that will allow you to successfully liquidate your company.
Are you ready to start the liquidation of your company?
Do you still have questions about whether or not you need to liquidate your company?
Call Insolvency Guardian today on 1300 60 70 60 for a no-cost consultation. We offer these free consultations so that everybody has free access to a liquidation professional before they begin the liquidation of their business.
What are the different kinds of liquidation?
- Official liquidation
- Provisional liquidation
- Creditors’ voluntary liquidation
- Members’ voluntary liquidation
Official liquidation: Creditors of the company submit an application for company liquidation to the court. For the official liquidation to begin, the creditors must verify that the company is insolvent. Once this is done, the official liquidation can commence and an official liquidator will be appointed. The liquidator will examine the company’s financial records to ascertain whether any illegal activities (insolvent trading for example) have taken place. The value of the company’s assets is established and the liquidator will make sure that creditors each receive a fair portion of the capital.
Provisional liquidation: If the court believes that the assets or financial resources of the company might be at risk during the interim time that lapses between filing of the application and the time of the court hearing, a provisional liquidator may be appointed to administer and exercise control over the company in order to protect the best interests of the creditors and higher-end distributions. Provisional liquidation will often be executed to ensure that creditors are compensated as close to full satisfaction of arrears as possible when the official liquidation commences.
Creditors’ voluntary liquidation: A creditors’ voluntary liquidation occurs when a business is no longer able to pay its debts as and when they fall due, and the shareholders come to an agreement under a special resolution that the company is to be wound up. The company must be insolvent in order to perform a creditors’ voluntary liquidation. Once a company becomes insolvent it may be the only option to satisfy the debts without waiting for the company liquidation to be ordered by the court, which would result in an official liquidation.
Members’ voluntary liquidation: A members’ voluntary liquidation occurs when the directors and shareholders agree that the company will cease its operations, wind up its affairs, and liquidate its assets while the company is still solvent. The company will be dismantled and the capital will be divided appropriately.