What is Court Appointed Liquidation?
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.