Have you received a Statutory Demand from a creditor?
If so then you need to act or you may find that the Courts appoint an Official Liquidator to your company. It is far better for you to take control of the process so that you determine the right solution for your company.
If you’ve received a Statutory Notice and want CONFIDENTIAL FREE ADVICE on your options then why not call one of our experts now.
If you’d rather read a bit more, we suggest you start by going to our page Is my company Insolvent? to determine the extent of your company’s problems. You can then Ask IRA! to get our suggested solutions. Liquidation might not be the best solution for you, there may be better alternatives.
In any case we provide more information below so you can better understand the process of a Court Liquidation. Commencement of winding up by the court may be started by creditors, directors, shareholders or ASIC. Most Court liquidations are commenced by the creditors of companies and the most common reason for winding up proceedings to be started is the insolvency of the company.
To start the court liquidation process, a creditor will serve a Statutory Demand on the company to pay a debt pursuant to section 459E of the Corporations Act. Failure to pay the money demanded in a Statutory Demand allows an application to be made to the Court to have the company wound up. At that time, a private practitioner, who is an Official Liquidator, is appointed as Liquidator of the company. Upon the appointment of the liquidator the powers of the directors cease and the liquidator takes control of the company.
In most cases, when this form of liquidation takes place, the company has stopped trading. Therefore the liquidator’s role is primarily to investigate the affairs of the company and recover or realise its assets and to distribute the funds to creditors in accordance with the provisions of the Corporations Act.