Can I start a new business after liquidation?
You may think that as a director of a failed company that it isn’t possible for you to start another company any time soon. You can start a new company and act as the director, however, there are some important things you should know before venturing into your next business in order to be prepared and avoid any other forms of insolvency down the track.
ASIC does have the right to disqualify you from acting as a director of a company if within the last 7 years you have been a director of 2 companies that have gone into liquidation and your creditors have received less than 50c on the dollar. This simply means that for every dollar you owe to your creditors, they have received less than 50c. If ASIC feel this is necessary, the disqualification may last up to 5 years. Disqualification can even reach a maximum of 20 years but more modest disqualifications are most likely.
In order to avoid any form of director disqualification, it is best to understand and evaluate what happened with your previous business that led to its insolvency. It is important to be aware that ASIC maintains a register of companies which have been placed into liquidation and the liquidation many also appear on your personal credit file.
To find out more about your options as a director, you need to consult with an insolvency specialist. At CRS Insolvency Services, our consultants are all highly trained in corporate insolvency assignments. We will provide professional advice to help you make the best decision for your company while avoiding personal liabilities. Contact CRS Insolvency Services on 1800 210 073 for 24/7 free expert advice now.