Winding up proceedings – Tempora Legal

What are winding up proceedings and how to oppose winding up proceedings?

If you have been served with a winding up application in the Federal Court of Australia then your company’s insolvency proceedings are substantially advanced and your company’s options to oppose the winding up proceedings may be limited.

If your company fails to comply with the requirements of a statutory demand then your company will be presumed to be insolvent. The creditor who issued your company with the statutory demand may then commence winding up proceedings in the Federal Court of Australia or in the Supreme Court of Western Australia.
If the creditor applies to wind up your company, the Court will set the application down for a hearing. Therefore, it is important to act fast if your company has been served with a winding up application.
Subject to obtaining leave from the Court, your company may not be able to oppose the winding up proceedings on the basis that your company does not owe the claimed debt or that your company has an offsetting claim. Therefore, the main way to oppose the winding up proceeding is to establish that your company is solvent.
Detailing the company’s financial position including why the company does not owe the applying creditor the money claimed in the statutory demand may be relevant to the Court determining your company’s solvency and the winding up proceeding. For instance, if your company can establish that there is a genuine dispute as to the debt claimed and otherwise that your company is solvent, the Court may dismiss the winding up application.
We have established relationships with corporate tax accountants in Perth, Western Australia who we can liaise with on behalf of your company to determine your company’s solvency. We can also provide you and your company advice and representation in regards to winding up proceedings.
We recommend that you send us an enquiry at your earliest convenience so that we can begin reviewing your company’s position and considering your company’s option in the winding up proceedings.

+61 (0)4 9216 1121

PO BOX 26, Beechboro, Perth, Western Australia 6063