Will I Be Bankrupted?
Liquidation is for Companies. Bankruptcy is for Individuals:
At law a Company is a person that is separate from its directors and shareholders.
This means that if a Company is unable to pay its debts from its own resources, the directors and shareholders do not have to pay those debts personally. It is the Company alone that is responsible for paying its debts. However, a director may have personal liability for Company debts in certain circumstances.
Shareholder Liability
The shareholders liability is limited to any unpaid capital not paid in relation to the shares they hold.
For example, if a shareholder is allotted 10,000 x $1 shares and have paid $10,000 for those shares, they cannot be asked to pay anything further to the Company. If however they have only paid $1,000 for those same shares, then the limit of their liability is to pay a further $9,000 – being the unpaid capital amount.
Director Liability
A director also has no liability for the Company’s debts. However, a director may be held personally liable in a number of circumstances including director loan accounts.
Things That May Lead To Bankruptcy
1
Personal
Guarantees
2
Insolvent
Trading
3
Tax and
Super
4
Breach of
Director Duties
5
Illegal
Transactions
6
Can I save
my business?
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We are a specialist insolvency practice providing free 24 hour advice to company directors & individuals throughout all states & territories of australia.
Our highly experienced & trusted professionals are qualified, licensed & regulated by the asic.
Established in 2006, we were the original, low cost liquidation provider and have since helped thousands of directors and hundreds of companies in a wide array of industries.
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24/7 Helpline 100% of Calls Answered by Qualified Expert – not a call centre
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Operating in All States of Australia
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30+ Years Experience
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1,500+ Directors Assisted Annually
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85% of liquidations effectively completed within 4 – 6 months
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Low Cost Liquidation Expert
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