Top 8 Beliefs About Liquidation That Are Wrong

insolvencyCompany Liquidation

There is no doubt, Liquidation and Corporate Insolvency can be complex, but in many cases, it is the best course of action.  However, many directors facing tough times don’t seek or obtain advice because they are desperately trying to avoid liquidation for all the wrong … Read More

What is Voluntary Liquidation?

insolvencyCompany Liquidation, Insolvency

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

How is Insolvency Calculated

insolvencyInsolvency

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

Combating Illegal Phoenixing – by Personal Liability for GST

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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

What happens when you liquidate a company

insolvencyCompany Liquidation

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

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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