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Wrong! Liquidations must be carried out by an ASIC Registered Liquidator, not the company director themselves. Revive Financial are Registered Liquidators and can provide you with any help you need to begin the Liquidation process, or simply discuss your company’s financial situation to see if Liquidation is the right option for you.
Wrong! Having your company go into Liquidation does not mean you will enter Bankruptcy yourself. There are some exceptions when a Company Director may be liable for company debts, such as if you breach your director duties, have received a DPN, have a director loan account or have made personal guarantees.
Wrong! Company Liquidation may affect your ability to obtain credit, but there are many non-bank lenders that specialise in lending for directors who have been refused loans as a result of a related Company Liquidation.
Wrong! Once the Liquidation process has started on your company, your creditors are not allowed to pursue payment of debts or continue any legal action against the company. The appointed Liquidator will be responsible for dealing with any creditor enquiries throughout the process.
Wrong! If you’re a director of a company that goes into Liquidation, you’re not automatically banned from being a director of another company unless you’ve been declared personally Bankrupt, served as a director for two or more liquidated companies, or have been disqualified.
There are three types of Liquidation available if your company becomes insolvent - it all depends on your individual circumstances.
CVL is the most common way to wind up an insolvent company and is initiated by a company's shareholders. The Liquidator's appointment can be made very quickly, the process is straightforward and it provided the best outcome for your company, its creditors and the directors.
MVL is initiated by a company's directors and shareholders. For your company to be wound up by MVL, a Declaration of Solvency must be agreed upon by the majority of your company's directors.
Court Liquidation, unlike CVL or MVL is an involuntary process where a creditor or shareholder apply to the court to commence winding up proceedings of your company. This commonly occurs when a company has not paid an amount demanded under a Statutory Demand.