Step 2: Decision To Proceed:

The decision about the way forward and whether to proceed with an appointment is always a matter for directors.

If it does make sense to proceed with a formal business restructuring or insolvency appointment, we’ll prepare the necessary documentation to commence via email.

Once the necessary documents are signed and lodged, our appointment commences.

Once appointed, the ‘appointee’ (liquidator or administrator) takes control of the company and its assets and proceeds with the appointment. What follows largely depends on the circumstances and what makes the most sense flowing from Step 1. Generally:

• Creditors and other necessary stakeholders will be notified of the appointment.
• If liquidation:
  1. Assets to be collected and sold, debts collected, potential claims pursued, etc. to realise funds to pay creditors.
  2. Liquidator conducts investigation and reports to the Australian Securities & Investment Commission (ASIC).
  3. If funds are available, dividends are paid to creditors.
  4. Appointment finalised once above processes completed.
• If voluntary administration:
  1. The administrator decides whether to continue trading or not.
  2. The administrator prepares a report about the company and details any offer directors may wish to make to creditors.
  3. If creditors accept the offer, directors regain control of the company and the administrator collects funds and pay creditors. If not, the company is placed into liquidation (the company is wound up).

We know the above can be confusing and refers to terms you and your accountant probably don’t come across each day. Please feel free to read further on our website or contact us for a confidential, no-obligation consultation and we’ll explain how everything applies to your specific circumstances.

Once appointment commences:

• We deal with all aspects of the winding up and subsequent deregistration of the company, keeping you and your professional advisors fully informed. This includes but is not limited to negotiating with your creditors (where appropriate and relevant).
• Directors are required to assist the appointee if required, including providing information about the company and all company records;
• Once initial information and company records have been provided to the appointee (liquidator or administrator), the directors can get on with their lives! All that remains is to assist the liquidator with information or respond to the occasional question as required.

We do everything in our power to ensure that our clients return to financial stability. We know the position can feel hopeless and the process overwhelming, although it does not have to be this way.

Implementing the options recommended by our team will minimise financial hardship and provide the best prospects for a brighter future.

The benefits of following this approach include:

• Peace of mind for directors knowing that they are complying with their obligations to act when the company is in trouble.
• Knowing that the situation is being dealt with via a proven process where you, your accountant and all relevant stakeholders are dealt with properly and transparently
• Live without the stress of being chased by creditors and regain control again.