Liquidation
Nature
There are three types of liquidation being Court Liquidation, Creditors Voluntary Liquidation and Members Voluntary Liquidation. The first two apply to insolvent companies while Members Voluntary Liquidation applies to solvent companies only. Prior to a Court Liquidation a liquidator may be appointed by the Court provisionally to secure a company's assets and maintain the status quo pending the outcome of an application to wind up (i.e. liquidate) the company.
Who Can Appoint
This varies according to the type of liquidation. Court appointed liquidators are usually appointed following the application of a creditor to the Court. Other parties including the directors, members or the Australian Investments and Securities Commission may also bring an application. Creditors Voluntary Liquidations may arise from resolutions of the directors then members of a company or by the liquidation of a company following a Voluntary Administration. Members Voluntary Liquidations require resolutions of the directors and members.
Timing
With the exception of a Court Liquidation, a liquidator may be appointed quite swiftly. Should you require further information in relation to liquidations please contact us.
