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

adminDirector Liabilities

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

ASIC 2017/2018 Report on Insolvencies Just Released

adminIn the Media

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

Director Identification Numbers Looking Likely

adminDirector Liabilities

  Have Your Say     Company directors will be compelled to register for a lifetime ID number or face penalties including a year in prison under a Commonwealth plan to fight phoenixing activity. Support for company ‘director identification numbers’, known as DINs, has long … Read More

All About Phoenix Transactions and Scams

adminIn the Media

Porsche, Range Rover and houses: How Nissan-driving Tim got caught in scam By Sarah Danckert Sydney Morning Herald Article 28 August 2018 Hit with a tax bill, locksmith Tim Batchelor thought the best thing to do was to follow a family friend’s advice and get some … Read More

Collapse of book distributor strands hundreds

adminIn the Media

Collapse of book distributor strands hundreds By Linda Morris 19 August 2018 — 5:31pm The collapse of a “stalwart” Melbourne book distributor has stranded hundreds of tiny publishers and self-published authors in the lead-up to the Christmas buying spree. Dennis Jones & Associates has been the … Read More

The Perils of Loud Letters of Demand


I thought I would pass on an article written by the solicitor, leading insolvency commentator and author of the Insolvency Bible, Michael Murray. Source: The perils of loud letters of demand A creditor being paid its debt following a letter of demand can be a Pyrrhic … Read More

Defending Unfair Preference Claims

stevekugelCompany Liquidation

In every liquidation, Liquidators seek to identify and recover monies paid to creditors where it can be shown the recipient knew or suspected a Company was insolvent at the time payment was made. The primary purpose of the law of Unfair Preference Claims is to … Read More