Court Liquidation (CL)

The most common reason a Liquidator is appointed by the court is because your company has failed to comply with the demands of an unsecured creditor. When this happens, a court will appoint an independent administrator to be responsible for liquidating your company’s assets.

What is it?

A Court Liquidator has a number of roles including collecting, protecting and realising a company’s assets and investigating and reporting to creditors about the company’s affairs. After liquidation is completed, he or she will also apply to have the company deregistered.

The process

The first thing that will happen is that a creditor will serve a Statutory Demand on your company to pay a debt. If you don’t pay then it’s assumed you are insolvent and an application is made to the court to have the company wound up. It is then that an Official Liquidator is appointed.

What we need you to do

If you have received a Statutory Demand, contact us as soon as you can. Once a liquidator is appointed, your powers as a director cease and the liquidator takes over control.

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