Under the Corporations Act, a company that is insolvent may be wound up in a number of ways. The most common types of liquidation are: A Court Liquidation Where an aggrieved creditor applies for a Court Order to have a compulsory liquidation imposed. The creditor … Read More
Can you be a Director after Company Liquidation
Yes – but there are rules in corporate insolvency and the ability to be a director in the future. The rules are explained below but for now, all directors need to understand the Court and ASIC can disqualify a director of a company that enters … Read More
How is Insolvency Calculated
When a company is experiencing financial difficulties and is later placed into liquidation, the appointed liquidator must undertake a detailed forensic investigation into the affairs of the Company and the conduct of its officers to explain the reasons for the Company’s failure. This will include … Read More
How much does it cost to liquidate a company in Australia
The most commonly asked question by Company directors and business owners considering company liquidation is “what is the cost of the liquidation process?” Well – that really depends on how the Company is wound up. An insolvent Company may be wound up in two ways. … Read More
Combating Illegal Phoenixing – by Personal Liability for GST
Reference: https://australianinsolvencylaw.com/2019/07/22/the-combatting-illegal-phoenixing-bill-2019/ — The Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019 was reintroduced into Federal Parliament on 4 July 2019. According to the Explanatory Memorandum, the intended laws will: introduce new phoenixing offences that; a) prohibit creditor-defeating dispositions of company property, b) penalise those who … Read More
Who is liable when a company goes into liquidation
When a business is struggling, the question most often asked by directors who are considering Company liquidation, is whether they will be held personally liable to pay its debts. Ordinarily, the purpose of having a company is to separate business risks and company debts from … Read More
What happens when you liquidate a company
A liquidator is appointed, generally because it can’t pay its debts. At the time of appointment, the liquidator becomes the proper officer of the company. At the same time, the company directors powers are immediately suspended. The powers of the liquidator are laid out in Section 477 … Read More
Accessory Liability
Both the Corporations Act and the Fair Work Act provide for accessory liability. Section 79 of the Corporations Act states: Section 79 Involvement in contraventions A person is involved in a contravention if, and only if, the person: has aided, abetted, counselled or procured the contravention; or has induced, whether by threats … Read More
What happens if my Company has an outstanding tax debt?
Company Liquidation is an option but before pursuing that, the process of debt collection used by the Australian Taxation Office will usually involve; Issuing reminder letters that state outstanding lodgements or debts exist. Issuing more serious reminder letters indicating possible penalties and interest charges that … Read More
ASIC 2017/2018 Report on Insolvencies Just Released
ASIC has just released its Report on Insolvencies for 2017/2018. 84% of insolvencies involve small companies with: 20 or fewer employees Assets of $100,000 or less 39% with liabilities less than $250,000 61% with liabilities greater than $250,000 97% of all small company liquidations result … Read More