The Australian Securities and Investment Commission (ASIC) exerted their power to force 32 Australian companies into liquidation in 2014. This was in order to help 99 of their employees recover more than $1.4 million in entitlements.
While many company liquidations are entered into by their directors on their own accord, it can also be forced upon them by an outside party; ASIC has the authority to intervene and force a company into liquidation in the following circumstances:
- Directors have not responded to contact from ASIC in six months
- The company has not paid its review fee to ASIC one year after it has fallen due
- If it is in the public’s interest for the regulator to act – in most cases, this is when employees are owed entitlements from the company
- ASIC has reason to believe the company is no longer in operation
Company directors and shareholders themselves, on the other hand, can initiate voluntary liquidations based on their own judgment about their insolvency situation. A major advantage of voluntary liquidation is that the directors and shareholders are able to select their own liquidator.
If you believe your company is facing the prospect of liquidation, Insolvency Services Australia (ISA) can help. Our insolvency practitioners will first conduct an impartial financial assessment of your company to see if liquidation isthe most appropriate course of action. If it is, our registered on-site liquidator can carry out the winding up process of your business professionally and with great care and skill.
At ISA, we understand the tight financial position you are in during times of insolvency. We understand that many companies may be trading insolvent, and in order to avoid repercussions from ASIC, it is best to speak to the experts now.
ISA also offers the lowest price, guaranteed, for our services. If you provide us with a written quote from another licensed insolvency practitioner, we will happily beat it.
Call us today on our toll free hotline at 1800 003 883 to find out more about our services or to talk to one of our consultants for free and confidential insolvency advice