One of the biggest misconceptions in the world of insolvency is what the true role of a Liquidator is and who the Liquidator truly represents.
The biggest question that Directors want answered is “how is a Liquidation going to affect me personally and my personal assets?” While every person’s circumstances are different, a Liquidator is unable to provide a Director with personal advice and be able to take on the Liquidation because that is a conflict of interest.
The reason that it is a conflict of interest is because the Liquidator DOES NOT represent the Directors, the Liquidator has a financial duty to CREDITORS of your business. Even the ASIC website confirms this by saying “Liquidators have a duty to all company creditors”. So it would appear that the true role of Liquidators is not to be there for Directors, despite as many would have you believe.
At LemonAide, we are here for Directors of companies that are considering putting their company into Liquidation.
We believe that Liquidation should not be a knee jerk reaction rather it should be a planned element of an overall strategy.
We look at your unique situation on a holistic basis. What that means is that we look at the financial position of the Company as well as the financial position of the Director(s). That way we get a full picture of what is going on and we can discuss with the client how the Company’s financial position may affect the Director(s) financial position. For example, if the Company has not lodged a BAS for a number of years and has employees, then a Director Penalty Notice may be issued by the ATO to the Director(s) personally.
So before going to the Liquidator, have a chat with us at LemonAide to make sure that you understand what a Liquidator does and how the Liquidation may affect you personally. Our initial confidential and non-judgemental consults are free of charge. Book your complimentary, confidential consult here.