Liquidation Specialists in Sydney
Companies facing financial difficulties may be unable to pay their debts. This is known as insolvency, and it can lead to liquidation.
Liquidating a business is the formal process of winding up its operations. It involves financial investigations, selling business assets and distributing any remaining money to creditors.
SV Partners - Sydney's Liquidating Experts
Our Sydney liquidation specialists provide assistance with two types of liquidation proceedings:
Creditors Voluntary Liquidation – Company directors and shareholders can voluntarily initiate the liquidation process. If the company is insolvent, or likely to become insolvent, company members can use liquidation to wind up the business and resolve its debts.
Court Liquidation – Creditors can apply to the court to wind up a company if it has failed to respond to a Letter of Demand. The court can appoint a Liquidator to wind up the business for the benefit of the creditors.
Liquidation is an effective tool for winding up your Sydney business. If you are facing financial difficulties or receiving demands from creditors, speak with SV Partners immediately.
Sydney Office
The Liquidation Process in Sydney
The liquidation process is relatively straightforward. Each case follows the same basic steps:
1. The Company Appoints a Liquidator
Liquidation begins when the company (or the court) appoints a Registered Liquidator. The Liquidator takes control of the company and assesses its outstanding debts.
2. Company Assets are Realised
The Liquidator investigates the company’s financial situation to determine whether it has failed due to misconduct. They will also sell company assets for the benefit of creditors.
3. Dividends are Paid to Creditors
After the Liquidator’s costs and fees are paid, any remaining money that was collected from the sale of company assets is paid to unsecured creditors in a predetermined order.
4. The Company is Deregistered
Finally, the Liquidator will deregister the company with ASIC. The company ceases to exist at this point, and creditors can no longer continue to pursue any remaining debts.
Liquidation is a last resort. Alternative solutions are available to companies in financial distress. Talk to SV Partners Sydney to learn more about liquidation, administration and restructuring.
Director Personal Liability in Liquidation
Company directors in Australia have a duty to operate in good faith and for the benefit of shareholders. If a director breaches this duty, the director can be made personally liable for company debts relating to:
Unpaid Pay As You Go Withholding (PAYGW)
Unpaid Goods and Services Tax (GST)
Unpaid Super Guarantee Charge (SGC)
Director personal guarantees
The scale of company debts is often large. This can place a significant strain on the directors, and it may lead to personal insolvency or bankruptcy.
Contact SV Partners immediately if your company is liquidated and/or you receive a Director Penalty Notice (DPN) from the ATO. Taking the correct action to a DPN can save you from personal liability and other negative outcomes.
Sydney Liquidation Experts
Since 2003, SV Partners has been offering expert advisory services across Sydney. Our Sydney team specialises in liquidation, insolvency and bankruptcy, so we can provide advice for every situation.
Speak to our team for help with issues of liquidation, bankruptcy, business turnaround, restructuring and financial advisory. We can tailor a solution perfectly suited to your business.
Located in the heart of Sydney, SV Partners works with a variety of private individuals and corporate clients from across the city. If you are navigating times of growth, change and financial uncertainty, support from SV Partners can put you in control of your future.
