LIQUIDATION SERVICES

ABR Liquidation Services is a specialist division providing winding up services on behalf of Directors, Shareholders and Creditors.

For Directors and Shareholders, the winding up process is commenced by Voluntary appointment of a Liquidator.

We prepare and provide the necessary Resolutions and Forms to initiate a Voluntary winding up.

For Creditors, the appointment of a Liquidator to wind up the Company is commenced on application to the Court. The winding up is known as an Official Liquidation or Court Liquidation.

 

Other than the manner in which the winding up is commenced (Voluntary or Court), the role of the Liquidator is the same.

As Liquidators we are tasked with securing and realising the assets of the Company for the benefit of Creditors, and investigating the Company’s affairs with a focus on why the Company failed and what, if any transactions of the Company are reversible for the benefit of Creditors.

Types of Liquidations

  •  Voluntary Liquidation (Insolvent Winding-Up)

  • Court Liquidation / Official Liquidation (Insolvent Winding-Up)

  • Members Voluntary Liquidation (Solvent Winding-Up)

 

How does a Liquidator get paid

A Liquidator gets paid out of Assets Realised through the Liquidation. A Liquidator’s fee for carrying out necessary and proper tasks in a Liquidation is subject to the approval of Creditors at a Meeting of Creditors. A Court may also approve a Liquidator’s fee. Creditors have the right to vote against a Liquidators fee, or challenge a Liquidator’s fee by application to the Court.

In the event a proposed Voluntary Liquidation has no Realisable Assets, a Liquidator will seek an indemnity payment from the Director/s of a lump sum estimate to undertake the Liquidation. The Liquidator should demonstrate to the Director/s how the lump sum estimate is made up.

In a Court Liquidation / Official Liquidation, only an Official Liquidator can be appointed. An Official Liquidator is an Officer of the Court and accepts Official Liquidation appointments as an Officer of the Court, and is obliged to carry out his/her duties as a Liquidator accordingly with or without Realisable Assets in the Liquidation. Often Companies that end up being wound up through the Courts are not trading and have no Assets, and unless there are specific transactions that can be recovered by the Liquidator for the benefit of creditors, an Official Liquidator does not get paid.

ASIC Guides

ASIC Insolvency: a guide for directors

ASIC Insolvency: a guide for shareholders

ASIC Liquidation: a guide for creditors

ASIC Liquidation: a guide for employees

 

 

Liability limited by a Scheme approved under Professional Standards Legislation.

© 2017 by Australia Business Rescue.