When you think of Liquidation, you probably think of people coming into a Company’s premises, kicking everyone out, locking the doors and selling all the assets regardless of who they actually belong to. Some elements of this are true but many elements are also false, however it depends upon the type of Liquidation and if the Director has properly prepared for the Company’s Liquidation or not.
Yes, there is a way to properly prepare for a Company’s Liquidation. We discuss how to properly prepare for Liquidation below. Let’s also explore the different types of Liquidation.
Do you know that a Company Liquidator works for your creditors? The Liquidator does not represent the Director of the Company despite you potentially appointing the Liquidator over your Company. Their job is to get as much money as possible for the Company’s creditors.
We look after your interests and represent you as the Director of the Company as you prepare for your Company’s Liquidation. We look at the Company’s affairs and dealings through the eyes of a Liquidator. We are able to provide you advice on what claims a Company Liquidator may be able to make against you, your family and the Company’s creditors. Our holistic review of you and your Company’s circumstances is what sets us apart from a Liquidator. A Liquidator is not able to advise how a Liquidation will affect you personally or provide you with specific advice to suit your circumstance before a Liquidation begins as it is a conflict of interest for a Liquidator to do so.
We can help you select an appropriate Liquidator for your circumstances, if you haven’t appointed one yet. We’ll also negotiate with the Liquidator on your behalf and look for ways to protect your interests throughout the process.
If you are preparing to Liquidate your Company or have recently appointed a Liquidator, get in touch with LemonAide while you still have some options by Booking an Appointment which is non-judgemental. There is no obligation for you to hire us to implement the proposed strategy, but after our 1st meeting together, you will feel so at ease that you will want to us in your corner.
A Creditors Voluntary Liquidation is where your Company owes people or other companies money and the member(s) and Director(s) (generally the same person / people or related people) appoint a Liquidator to deal with the Company’s insurmountable debt position.
Generally these types of appointments are not thought through properly and have either been instigated by an accountant advising a Director that the Company is insolvent and should go straight to a Liquidator to discuss the Company’s circumstances OR the Australian Taxation Office has sent a letter to the Director advising that the Director will be personally liable for elements of the Company’s debt if the Company does not pay the debt, put the Company into Voluntary Administration or wind up the Company through a Creditors Voluntary Liquidation.
What is not happening in this process? No one with a vast amount of insolvency experience is reviewing the Company’s books and records to see what claims could be pursued by a Company Liquidator. No one is taking into account your personal asset and liability position to see if there is another way to deal with the Company’s creditors. No one is talking to you about how a Liquidation may affect you personally. No one is talking to you to see if you may be eligible to restructure the Company’s business for potentially a second chance at business without all the debts.
If you have no one reviewing and talking to you about these things, you may be setting yourself up for a costly mistake. Book an Appointment today, to see how we can help you given your circumstances as you deserve to make an informed decision.
DO NOT let a Company Liquidator get you to sign their appointment documents quickly quoting a lack of time available as the reason to sign. Call us today to discuss your circumstances and see if you should sign quickly.
A Court Liquidation is where a creditor has utilised the court process to attempt to recover their debt. The creditor will have sent a creditors statutory demand to the registered office as noted on the Company register held with the Australian Securities and Investments Commission (“ASIC”). You need to make sure that the details on the ASIC register is up to date. If the registered office is an accountant that you have not used in many years, then chances are that you will not receive the statutory demand. However, the obligation to keep these details up to date is on you. The creditor is under no obligation to confirm the details of the registered office with you before serving the demand.
If you haven’t realised or been notified that this process is going, you will receive a call or letter from the Liquidator’s office advising of the appointment, which will be a big surprise for you. But then you are probably fearing the worst as you are hearing all of the horror stories from Google about a Liquidator’s actions. Those stories have a backstory that has not been reported, but Liquidation is a serious action that has been taken.
We take the time to explain the Liquidation process and things that you can expect during the Liquidation process and how this will affect you personally as the Company Director and your way of life. We can help you especially if there are assets in the Company that you would like to continue to utilise in the future such as motor vehicles, websites, phone numbers. We can provide you advice as to if it is worth attempting to get the Company taken out of Liquidation or if it is preferable to simply buy the assets from the Company Liquidator.
Still not sure, check out our experience at the About Us Page and then go and book your appointment today. We guarantee, you will feel better about talking to someone about your circumstance and at least we have a lot of practical experience for you to utilise.
This is a solvent Liquidation and is used to close down a Company’s operations where there is no money owing to creditors. You may be asking why not just deregister the Company with the Australian Securities and Investment Commission? The MVL gives a Director some comfort that the Company is deregistered properly and there are no creditors owed any money.
No matter the type of Liquidation whether it is a Creditors Voluntary Liquidation gone wrong or not how you thought it was going to go or if your Company has been placed into Liquidation by Court, we are able to help you to get a better outcome. Book an Appointment today to discuss how LemonAide can help with your circumstance today.