Creditors Voluntary Liquidation

How it Works

This approach consists of winding up the affairs of the company where the directors and shareholders have determined that due to the insolvency of the business they no longer wish to continue trading. A Creditors Voluntary Liquidation may also eventuate where a company has been placed into Voluntary Administration and a proposal for a Deed of Company Arrangement has not been accepted by creditors.

Benefits:

• The appointment is made voluntarily by the directors and shareholders.
• The appointment can be made expeditiously where the appropriate notice period is otherwise waived by the required majority of shareholders.
• Allows for an independent insolvency practitioner to investigate the affairs of the company and:
  • make recoveries of voidable transactions under “claw-back” provisions
  • realise company assets and
  • make a distribution to creditors in accordance with the Corporations Act.

Michael Jones, Bruce Gleeson and Daniel Soire are Registered Liquidators and can carefully evaluate whether voluntary liquidation is the “right option” in the circumstances.