Liquidation – Creditors’ Voluntary & Court Appointed
Businesses today operate in an increasingly dynamic and competitive environment. Slowing growth opportunities, increased competition and an uncertain economic outlook all present threats to performance and viability.
To assess whether or not your company is facing the prospect of insolvency, you should regularly consider if it is solvent. This is to question whether your company can it pay its debts as and when they fall due.
If you feel your company may be insolvent or is in danger of becoming insolvent, then you should take early intervention and take steps to save your business by considering a voluntary administration.
If your company finds itself in the position of having no alternative but to wind-up its affairs, then you should consider a voluntary appointment, such as a Creditors’ Voluntary Liquidation.
Creditors’ Voluntary Liquidation
If your company is insolvent and you don’t wish to save it then the most efficient process to bring the affairs of the company to an end is a Creditors’ Voluntary Liquidation (CVL).
The directors and shareholders can initiate a Creditors’ Voluntary Liquidation. A company can be placed into a Creditors’ Voluntary Liquidation immediately, if 95% of the shareholders consent to the appointment. Once the Liquidator is appointed, any remaining assets will be sold and distributed to the creditors in accordance with the priority as set out within the Corporations Act 2001.
At CRS we are happy to quote a fixed price for a Creditors’ Voluntary Liquidation in most circumstances.
An involuntary liquidation is normally initiated by a creditor and the appointment of a liquidator is made by an order of the Court. Normally a creditor who is owed money would first obtain judgement for the debt from a local or district court, depending upon the amount owed. Once judgement has been obtained the creditor would issue a statutory demand. A creditor may then apply to Court for the winding-up of the debtor company and the Court may appoint an Official Liquidator or a Provisional Liquidator. This process can take up to several months and you should obtain legal advice before commencing any action.
At CRS we are registered to act as Court appointed liquidators. We would be happy to discuss consenting to act as a liquidator or provide you with commercial advice if your company is confronted by a Court action.
If your company is facing insolvency we at CRS Insolvency Services are happy to meet with you to discuss your options. Our first consultation is always FREE.
For free immediate professional advice, call us on our 24 hour hotline at 1800 210 073 to speak to one of our expert staff about your situation and options.
Or if you prefer, you can email us at firstname.lastname@example.org and we will get back to you as soon possible.