Court Liquidation Services
Court liquidations are as a result of a creditor or creditors of a company making an application to the court to have the company wound up, usually after failing to comply with a statutory demand for payment.
Once the order has been issued by the court a liquidator is appointed at that time. Usually the creditor has already chosen a liquidator and obtained a consent to act to lodge with the court together with the application for the winding up of the company.
Please don’t hesitate to contact us on 03 9818 8800 to ask about court liquidation and how we can assist, including consenting to act.
Our experienced team ensures that court liquidations are handled with expertise and that all matters are resolved and actions carried out as quickly as possible.
The tasks and duties of a court appointed liquidator
- In court liquidations the liquidator is not obliged to call a creditors’ meeting unless there are specific circumstances in place that require this action be taken. This can include creditors passing a resolution that requires a meeting to be called, or a matter arises that requires creditor approval.
- The role of the court appointed liquidator is not dissimilar to a liquidator appointed in a creditors voluntary liquidation albeit that it was not the shareholders of the company that appointed the liquidator. Commonly the creditor that has taken the action has selected their own registered liquidator to consent to act as the liquidator should the company be wound up by the Court.
- The liquidator will collect and realise the company’s assets and – after all costs of the liquidation have been met – may distribute the proceeds of the realisation (subject to rights of any secured creditors) to priority creditors (including employees) and then unsecured creditors.
- In addition to this the liquidator will investigate and report to creditors about the company’s affairs and also report to ASIC about the failure of the company and any possible offences attributable to the company.