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Summary Company directors are sometimes persuaded to appoint voluntary administrators while there is a winding up petition before the Court to wind up their company The voluntary administrator/s will need to appear in Court and convince the Judge it is in the best interests of creditors to allow the voluntary administration to continue (rather than […]

Summary Creditors are usually frustrated with the liquidation process for a range of reasons, including inadequate disclosures by liquidators of key information Prior to 2016, creditors were limited in their ability to hold liquidators to account via reporting and information gathering A new insolvency framework introduced in 2016 ensures that creditors have a right to […]

Summary Accounting fraud involves a deliberate deceit that results in a misleading representation or misstatement in financial accounts Phoenix activity, of itself, involves non-payment of debt but not necessarily accounting fraud Company directors should ensure that accurate financial statements and tax returns are lodged, even if engaging in phoenix activity It is possible for directors […]

Summary Excessive charging by liquidators puts the claims of unsecured creditors at risk; Remuneration must be ‘reasonable’ and take into account a range of factors; Excessive charging can be challenged by creditors, but the best option for creditors is to take care in appointing responsible liquidators and thoroughly examine the proposed costs of a liquidator […]

Summary Formerly, it was a requirement in a Voluntary Members Liquidation (MVL) that, if the directors of company were not prepared to make a declaration of solvency, a first meeting of the creditors had to be called by the liquidator. At this meeting the liquidator could be replaced. As a result of changes to the […]

Summary Liquidation is the process of winding up a company in an orderly manner. The end result is the distribution of any remaining assets to those owed by the company; Liquidators, the professionals that oversee a liquidation, are appointed by shareholders, creditors or the Court, but company directors have an important say in their appointment; […]