Liquidations
- Roles and Powers of the Court Appointed Liquidator
The liquidator attends to the following during a Court liquidation: Takes possession of, and realises assets (this includes the ability to continue to trade the company so far as is necessary for the beneficial disposal or winding up of the business). Investigates the company’s books and records with a view to recovery of funds... Read More »
- Director's duties
Cessation of Power but Continuation of Role The powers of directors and other officers of the company cease on the appointment of the liquidator, but they retain their office and their statutory responsibilities continue (s 471A(3)). Statutory Obligations The most important sections of immediate consequence from a director's point of view on the appointment... Read More »
- Communication with Creditors
There are a number of safeguards in the Courts’ rules and the Corporations Act to ensure that creditors are not overlooked and thereby miss an opportunity to participate in any liquidator’s distribution. They are: As soon as practicable after being informed of the appointment, the liquidator must advertise notice of appointment ... Read More »
- Proof of Debt Procedure
A “Proof of Debt” is one of the forms prescribed by the Corporations Act (Form 535). It is used as a way of formally documenting a creditor’s claim against a company in liquidation. Before paying a dividend to unsecured creditors, a liquidator must decide which creditors’ claims to “admit” and for what amounts.... Read More »
- Insolvent Trading
Directors may be personally liable for insolvent trading by the company. In respect of debts incurred after 23 June 1993, directors contravene s 588G where; a person is a director at the time a company incurs a debt; the company is insolvent at the time of incurring the debt or becomes insolvent because... Read More »
- Provisional Liquidation
Purpose - Protection during delay When an application to wind up a company is lodged with the Court, there can often be a delay of six weeks or more between the date of lodgment of the winding up application and the date of the Court hearing. In most cases, this delay will not be an issue. ... Read More »
- Members' Voluntary Liquidation
A Members' Voluntary Liquidation (“MVL”) is not an insolvency administration . It is the method provided for by the Corporations Act to wind up a solvent company voluntarily. The liquidator chosen is usually, but need not be in certain circumstances, a registered company liquidator (refer s 532(4)). Purpose The purpose... Read More »