SUPPLIED
Gareth Hoole is a director of Ecovis KGA and a member of the Restructuring and Turnaround Association of New Zealand.
ANALYSIS: In troubled economic times some businesses, despite their best efforts and use of the survival tools available, simply cannot continue and management must make the tough call that there is no longer a core, sustainable business. At that point, the inevitable outcome is the appointment of a liquidator.
Company directors have a responsibility, enshrined in statute, to not continue ongoing trade of a business in a manner that is likely to cause loss to its creditors. They must do the responsible thing and cease trading, or they could face personal liability for losses incurred.
Liquidation is the f…
Read the full article at: https://www.stuff.co.nz/business/prosper/regulation/121389156/liquidation-is-never-a-pleasant-experience-but-there-are-ways-to-reduce-the-pain
