Liquidation – Tempora Legal

What is liquidation?

Liquidating a company allows an independent registered liquidator to take control of your company so that its affairs can be wound up in an orderly and fair way to benefit creditors.

The three main ways in-which a company begins to be wound up in liquidation are: voluntary liquidation by the company’s shareholders; court appointed liquidation; or through a vote of creditors under a deed of company arrangement.
The liquidator’s role is to oversee, investigate and report on the company’s’ affairs to the creditors. The liquidator will have rights to protect, collect and sell the company’s assets as well as take any necessary action to defend or make legal claims against third parties. Depending on what actions you took as a director of the company, the liquidator may be able to make a claim against you to recover some of the company debt.
Once the liquidator is appointed, the liquidator may be required to continually give the company’s creditors information regarding the affairs of the company and the liquidators remuneration. In doing so, the liquidator may have rights to obtain information from you.
As a previous director of the company, you will have rights and obligations to assist the liquidator in performing their role. A liquidator may require you to attend court if they require a public examination to be conducted.
If you believe your company is insolvent and are considering placing the company into liquidation, it is important that you consider who the liquidator will be. Establishing a good working relationship with the company’s liquidator may save costs and ensure that the winding up process is as smooth as possible. We have established relationships with registered liquidators in Perth, Western Australia that we can liaise with on your, or your company’s, behalf.
If you would like advice on liquidating your company as well as your obligations and the risks in liquidation, please send us an enquiry. Otherwise, continue researching on our website for more information. We discuss statutory demands next.

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PO BOX 26, Beechboro, Perth, Western Australia 6063