Restructuring, Turnaround and Insolvency Specialists

Creditors’ Voluntary Liquidations

Often directors and shareholders wish to initiate a liquidation of their company themselves. This generally occurs when directors and shareholders feel they are no longer capable of maintaining or operating their business which appears insolvent.

The CVL process allows for an orderly winding up of a company and bringing its affairs to an end. The Liquidator acts as an independent third party to ensure that the process is conducted appropriately and in accordance with the Corporations Act. It allows for a realisation of the company’s assets, investigations into the company’s failure and distribution of the company’s assets amongst creditors.

At Brooke Bird, our policy is to examine each case on its merits and only recommend liquidation if appropriate. Nowadays it is possible to place a company into Creditors’ Voluntary Liquidation almost immediately.

For those directors who have received a Director Penalty Notice issued by the Australian Taxation Office, it may enable them to avoid personal liability for unpaid tax.

How is a Creditors Voluntary Liquidation commenced?

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