A person is solvent if, and only if, the person is able to pay all the person’s debts, as and when they become due and payable. A person who is not solvent is insolvent*. (*Section 95A of the Corporation Act – A person includes a company).
As registered and official liquidators we are qualified to and experienced in liquidating solvent and insolvent companies.
A solvent company is typically liquidated to enable the most tax effective distribution of its surplus assets to shareholders.
An insolvent company may be liquidated by one of a numbers of means:
- official liquidation
- creditors voluntary liquidation
- provisional liquidation
Typically, liquidation of an insolvent company includes four primary roles, prior to its finalisation:
- asset realisation
- dividend payment
- reporting to stakeholders, including creditors, shareholders and Australia’s regulatory authorities including the Australian Securities and Investments Commission
The liquidation type utilised is determined by the company’s circumstances.
We offer a complete range of corporate insolvency services and assist directors, creditors and shareholders choose the liquidation type suitable to the circumstances.