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Liquidation is the process used to wind up a Company's affairs and bring its existence to an end.
As the name suggests, the appointment of the Liquidator in Court Appointed Liquidations is made by the Court. The appointment is the outcome of a party proving to the Court there are valid reasons why a Liquidator should be appointed to wind up the Company.
In many cases when this form of liquidation takes place, the company has ceased trading. This means the liquidator’s role is to investigate the affairs of the company and to recover or realise its assets and distribute the associated funds to its creditors in accordance with the Corporations Act.
This form of action is normally taken by creditors, shareholders or directors of a company or ASIC.
To start the process, a Statutory Demand is served on the company. This requires professional legal advice. If the Company fails to pay the money stated in the Statutory Demand an application can then be made to the court to wind the company up.
At that time an Insolvency Practitioner, such as Offermans, is appointed as Liquidator of the company. Once a Liquidator is appointed the powers of the directors cease and the Liquidator takes control of the Company.
Court Appointed Liquidation provide a means for those impacted by the operations of a company to take action to protect their interests.
For example, the process provides creditors who are owed money, stakeholders concerned with the management of the Company, Directors and/or governing bodies the ability to limit the risk to themselves and their businesses/organisations.
It’s also the case that sometimes business owners legitimately believe their business will ‘turn around’ on its own or, they simply can’t make the decision to wind up their Company themselves.
Experience: As Townsville’s first locally-owned, independent specialist insolvency accounting practice in Townsville, we have over 20 years’ experience helping businesses through this process.
Expertise: Our staff has a wide variety of expertise and qualifications including law, allowing us to provide you the information to make informed choices to achieve the right solution for you.
Ethics: We provide professional, judgement-free, confidential and fully independent services to guide you or your business through any financial situation.
In a few steps our team can help make sense of your situation, formulate a plan that’s right for you and put it in place to achieve a solution that achieves your financial future free from unpayable debts.
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