Liquidation
Liquidations occur when the directors of an insolvent company place the company into liquidation by appointing a registered liquidator. This is referred to as voluntary liquidations. A liquidator can also be appointed by the court on either just or equitable grounds or in circumstances where the company is insolvent.
A company is insolvent if it unable to pay its debts as and when they become due and payable. The definition of insolvency is contained in section 95A of the Corporations Act 2001.
Roser Lawyers regularly acts for Liquidators throughout Australia on a range of recovery actions and in advisory roles on technical legal issues.
Roser Lawyers also regularly acts for creditors of companies who are owed debts by companies in liquidation and also directors by companies in liquidation.
What Happens When a Company is placed in Liquidation?
When a company is placed in liquidation and a liquidator appointed, control of the company is removed from the company directors and the liquidator takes over. In accordance with the provisions of the Corporations Act 2001 (Cth) liquidators are then required to undertake a number of tasks. Often Roser Lawyers will be engaged by liquidators to provide expert advice during liquidation and to assist liquidators, throughout Australia, realise assets for the benefit of creditors.
If you are a director and your company has been placed into liquidation it is very uncertain time and could be quite risky in circumstance where there are recovery actions available to liquidators against you personally.
The Corporations Act has strong powers and duties as of liquidator which assists a liquidator in recovering property and investigate transactions of avoidable nature which will ultimately be provided to the liquidator and then distributed in accordance with section 556 of the Corporations Act 2001.
Roser Lawyers is regularly engaged to assist liquidators in the recovery of these actions. Further information is contained in the tabs.
Should you have a matter concerning Liquidation, do not hesitate to contact our office for a confidential discussion.