Liquidation

Directors have a duty to ensure that a company does not trade whilst it’s insolvent. If a director continues to trade in circumstances where it cannot pay its debts as and when they fall due, the director of the company commits an offence and may become personally liable.

If your company is experiencing any financial difficulties and you are concerned that your company is either at risk of becoming or has become insolvent, you should seek legal advice urgently. We will canvas any available options that you may have to potentially avoid winding up the company. However, if it is necessary or preferable to liquidate, we have close relationships with liquidators and insolvency accountants, which enables us to assist you to undertake the process with ease in what can otherwise be an extremely stressful time.

Once a liquidator is appointed, their role is to realise the company’s assets and distribute the funds among the company’s creditors, in order of priority prescribed by the Corporations Act 2001 (Cth). Usually, creditors will receive only a proportion, if anything, of what they are owed by the company.

After the funds have been distributed among the company’s creditors and the affairs of the company are finalised, the liquidator will deregister the company with ASIC.

Specifically, Dark Legal can provide advice on:

• receiving and issuing creditor’s statutory demands;
• applications to set aside a creditor’s statutory demand;
• advice on insolvent trading of a company;
• applying or resisting orders for the winding up of a company
• a company’s rights when a liquidator is appointed to it
• the duties and obligations of a liquidator in relation to a company;
• recovery of money and property by debtors to a company in liquidation;
• preferential payment claims and other voidable transactions;
• PPSA disputes;
• defending and pursuing insolvent trading claims
• deeds of company arrangement;
• lodging caveats and debt recovery; and
• lodging proof of debts.