Fast, Affordable Liquidation so You Can Get Your Life Back on Track
What Is Company Liquidation?
Company Liquidation is the process of winding up your company’s business: selling its assets, investigating its affairs, recovering any legal claims and distributing the funds received to your creditors and/or shareholders. If Liquidation is the right option for you, one of our in-house Registered Liquidators will be appointed to your company to carry out the Liquidation.
Types of Company Liquidation on the Gold Coast
There are three types of Company Liquidation which may be applicable if your business is facing financial trouble, is insolvent (or soon to be insolvent) and you are seeking to liquidate your company’s assets.
- Creditors Voluntary Liquidation – when your company becomes insolvent and can no longer meet its financial obligations.
- Members Voluntary Liquidation – when your company is still solvent, all your creditors debts are paid in full and the remaining funds distributed to directors and/or shareholders.
- Court Liquidation – when you or your creditors apply to the courts to have a Liquidator appointed.
What is the Role of the Liquidator?
Once a Liquidator is officially appointed, they are in charge of closing down the business and investigating the circumstances that led to the company’s insolvency. The Liquidator is required to act in the best interests of your creditors and will look into all of your company’s financial affairs and concerns during the course of the Liquidation process. The Liquidator will establish whether your company has any illegal or improper business dealings and if there were transactions which could cause the company to be charged with insolvent trading. The Liquidator will also uncover any void transactions and any preferential payments made to creditors prior to entering Liquidation.
The next step is to identify all of your company’s assets, recover any monies owing to your company and then distribute available funds to your creditors. After settling all debts, any surplus, will be distributed to company shareholders. A final report is to then be created by the Liquidator and submitted to the Australian Securities and Investments Commission (ASIC), which will also include an application to deregister your company, the final part of the Liquidation process.
The 5 Major Benefits of Company Liquidation
- All outstanding debts are written off: Mounting debt is incredibly stressful, especially when there is no way to trade out of the problem. Once you begin the Company Liquidation process, all debts incurred, including amounts owed to the Australian Taxation Office (ATO) are written off and/or dealt with.
- Avoid insolvent trading: If you allow your company to continue to trade and incur debt without a reasonable expectation that the debt will be repaid when it falls due, you may be liable for an insolvent trading claim. Liquidation avoids these risks.
- Avoid personal liability: The ATO can hold you personally liable for certain company tax debts by issuing a Director Penalty Notice. You can avoid personal liability through Company Liquidation, provided you act quickly in initiating the process.
- Stops harassing phone calls: The moment your company initiates Liquidation, we notify your creditors. Instead of chasing you, their focus is shifted onto the appointed Liquidator.
- Gives you a break from the past: There are many cases where directors of a company battle with their financial problems for a long time and don’t take action fast to liquidate their business. Company Liquidation allows you to move forward from your financial woes.
The Best Liquidators on the Gold Coast
One of the biggest decisions you will ever make is whether or not to liquidate your company. We understand that the stress of a failing business is immense and the cost of trying to battle on can affect your health and the well-being of your family. For many company directors, it is more than they can handle. Sometimes this means Company Liquidation is inevitable.
At Revive Financial, we understand how difficult Company Liquidation is and we pride ourselves on helping you through the process with efficiency and care. We will assess your company and its financial position and provide expert advice on any alternatives which may be available to you. If Liquidation is necessary, we will explain in detail all aspects of the process so you can regain financial stability.
We Can Help Your Company Through Liquidation
If your company is struggling to meet its financial obligations, you’re not alone. No matter what problem you face, we’re here to help you find a solution that gets you back on track sooner and safer.
Our Gold Coast team consists of Chartered Accountants, Registered Liquidators, Bankruptcy Trustees, Turnaround Specialists and Financial Advisors. We have been helping franchise groups and individual franchisees in Queensland along with a number of other Gold Coast-based companies with the Liquidation process for over ten years.