Creditors Voluntary Liquidation
In the situation where directors of a company have formed the opinion that the company is insolvent, they have the option of starting a Creditors Voluntary Liquidation.
But it may not be the right solution for you!
Before pushing the button on a Creditors Voluntary Liquidation we recommend you CALL US NOW and obtain our CONFIDENTIAL FREE ADVICE.
In particular, if you are a director of a small company and must liquidate your company to avoid personal liability due to a Director Penalty Notice then try our sister website www.dissolve.com.au where you will find advice on how to get a Creditors Voluntary Liquidation AT THE LOWEST POSSIBLE PRICE.
If you’d like more information before calling, then we suggest you go 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.
We have a page that explains the process and advantages of a Liquidation through Restructuring Works here.
If Creditors Voluntary Liquidation is the right solution for you then you’ll be pleased to know it is a simple process. The Directors will call an extraordinary general meeting of the company and seek to quickly call for a shareholders meeting. At that shareholders meeting, shareholders will be asked to pass a Special Resolution to wind up the company and to nominate a liquidator. A meeting of creditors is called for around 2 weeks after the shareholders meeting and at that meeting creditors, by ordinarily resolution, can appoint a liquidator of their own choosing.
The process of the winding up once the liquidator has been appointed is similar to that of a Court Liquidation. The liquidator’s role is to realise the assets of the company and to distribute those proceeds in accordance with the provisions of the Corporations Act.
Recent amendments to the Corporations Act have reduced the notice period required to place a company into liquidation by Creditors Voluntary Liquidation and so it can now be done quite quickly. As a result the number of Creditors Voluntary Liquidations is rising as a proportion of total company insolvencies. It is particularly useful in assisting directors in avoiding personal liability for tax debts in the situation where the Australian Tax Office has served a Directors Penalty Notice, sometimes called a Section 222 Notice, on the directors.
If you are sure that Creditors Voluntary Liquidation is right for you then now is the time to get the LOWEST POSSIBLE PRICE AT www.dissolve.com.au
