Company Liquidation Newcastle
Get back to financial freedom with company liquidation
What Is Company Liquidation?
With Australia’s rapid growth in small businesses, there are thousands of businesses every year facing insolvency. This could be from a revenue drop, shortage of cash flow or poor management. When a company becomes insolvent, its only remaining choice is to Liquidate.
Company Liquidation is the process of winding-up your company to bring its affairs to an end. Liquidation should be seen as a last resort after all other options have been explored. The Liquidation process is conducted under the Corporations Act and involves the appointment of an in-house Revive Financial Liquidator. The Liquidator collects and sells your company’s assets to distribute them to your creditors and then your shareholders.
If your company is not yet insolvent but is showing early warning signs, you need to act fast before it’s too late. Alternate options such as Business Turnaround, Restructuring, and Voluntary Administration may help your business survive without having to Liquidate.
Types of Company Liquidation in Newcastle
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 has exhausted all other options.
- Creditors Voluntary Liquidation – the Liquidation of insolvent companies where the company is no longer viable, cannot pay its debts/bills on time and is agreed by the directors and shareholders to appoint a registered Liquidator to handle the affairs.
- Members Voluntary Liquidation –the Liquidation of solvent companies where the director and shareholders wish to wind up the affairs of the company and deregister it.
- Court Liquidation – a court appoints a Liquidator to manage the affairs of a company if it’s believed that the assets of the company may be at risk of loss or being taken in some form.
Your Responsibilities
If your company is placed into Liquidation, as a director you will have a duty to assist the Liquidator during the Liquidation process. This includes providing the Liquidator all necessary information such as financial affairs, books and records. You will also need to complete a Report as to affairs form which sets out the company’s assets and liabilities.
The Risks Involved
- Insolvent trading. Insolvent trading is the continued trading of a company which is unable to pay its due and payable debts. If a company trades after it has become insolvent, you and any other directors can be held personally liable.
- Director Penalty Notice. A Director Penalty Notice (DPN) is given to directors when they don’t comply with PAYG and superannuation payments.
- Personal Guarantees. If you make a personal guarantee and intend on going into Liquidation, you may be personally liable for those guarantees.
Can You Be Held Personally Liable for Your Company’s Debts?
You are not generally liable for your company’s debts, unless:
- you are accrued debts through a Director Penalty Notice,
- you are liable to the ATO under a Director Penalty Notice,
- you are liable for insolvent trading, or
- you have a loan account for funds you withdrew from the company.
The Benefits of Appointing a Liquidator in Newcastle
- It is a way in which you can avoid personal liability under a DPN,
- It may limit or reduce your exposure to insolvent trading,
- It results in an independent person being appointed to the company, who will conduct an orderly winding up of your company’s affairs, and
- It avoids the company being placed into liquidation by the ATO or another creditor.
Liquidate Your Newcastle Business With Us
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 in Newcastle, it is more than they can handle. Sometimes Company Liquidation is inevitable.
At Revive Financial, we understand how difficult Company Liquidation is. We offer a fast, efficient and affordable process so you can get back to what matters most . 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.
An Expert Team Who Care
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.
Our team consists of Chartered Accountants, Registered Liquidators, Bankruptcy Trustees, Turnaround Specialists and Financial Advisors. We have been helping retailers, infrastructure and construction businesses and manufactures in New South Wales along with a number of other Newcastle-based companies through the Liquidation process for years. Our qualified team has over 43 years of combined experience and understands each clients’ individual needs are different.
