Creditor Voluntary Liquidations are similar to Court Liquidations in that the effect on Creditors and Directors are the same. However, the process regarding the winding up of a company by Creditor Voluntary Liquidation differs dramatically.

Under the Creditor Voluntary Liquidation method, a company must be insolvent, that is unable to pay its debts as and when they fall due. Rather than the Company being petitioned for winding up by one creditor, shareholder or director as is the case in a Court Liquidation, the Creditor Voluntary Liquidation process requires contribution from all three parties.

For further information regarding Liquidation, please see the booklet available for your review or visit "ASIC".