What investigations will the liquidator undertake?
The liquidator must complete a minimum level of investigations whether or not there are funds in the liquidation. The Liquidator must then report the findings of their investigations to the Australian Securities and Investments Commission pursuant to Section 533 of the Corporations Act. Some of the issues that this confidential report must cover include:
- The history of the company and the reasons for its failure;
- Report the claims of employees, secured and ordinary unsecured creditors and the nature of the debts incurred;
- Report on whether the directors have traded the company whilst it was insolvent;
- Report on whether the directors made any preferential payments to creditors which may be recovered;
- Report on what offences the directors have committed under the Corporations Act;
- Report on whether the directors have previously been involved in a liquidation and whether they should be banned from acting as a director.
The liquidator is also able to publicly examine directors and other people in court. Other investigation powers include the search and seizure of company assets and company records. In certain cases a liquidator can apply to court to gain access to a property.
Call us today if you would like to discuss the investigation powers of a liquidator on our toll FREE advice line on 1800 210 073.