What is liquidation?
Liquidation is the organised winding up of a company’s affairs. The purpose of liquidation of an insolvent company is to have an independent person take control of the company so that it can be wound up in a way that benefits the creditors and distributing any surplus among its shareholders.
The three types of liquidation are:
- court
- creditors’ voluntary, and
- members’ voluntary.
A creditors’ voluntary liquidation is a liquidation initiated by the company. A court liquidation starts as a result of a court order, made after an application to the court, usually by a creditor of the company.
What is the difference between Liquidation and Voluntary Administration?
The objective of a Voluntary Administration is to save a company so it can continue its operations and continue to trade, whereas the goal of a liquidation is to finalise all of its affairs, cease trading and provide what is owed to creditors.
How can Sajen Legal help?
Our team is respected and has a close working relationship with many of the major insolvency practitioners around Australia.
We have acted in large and complex liquidations both nationally and internationally providing analytical advice within tight timeframes and often under difficult circumstances.
Our experienced team will ensure that public examinations are focused and result driven so that liquidators and creditors receive value for money from the process and key information to assist them to perform their duties.
We are focused on providing strategic advice to assist liquidators in collecting, protecting and realising assets and investigating and reporting to creditors about the company’s affairs, including preference payments, uncommercial transactions and possible claims against the company’s officers.
We assist with debtor ledgers on a regular basis and are favoured by trustees to undertake this work due to our ability to recover debts cost effectively. Our services include drafting proceedings, letters of demand, creditors statutory demands, bankruptcy notices, judgments, enforcement proceedings, seizure and sale of property, garnishing of wages, creditors petitions and winding up proceedings.
Our lawyers appear regularly in the Federal Court, the Federal Circuit Court and other jurisdictions.
If you have any questions regarding your company or liquidation, please don’t hesitate to contact our Sajen Legal team.