If your company is insolvent, or is likely to become insolvent, the natural inclination is to continue trading in the hope that things will turn around. There are, however, many reasons why making the decision to voluntarily place your company into liquidation is a more beneficial course of action. These include:
- Avoiding civil penalties of $200,000 for trading whilst insolvent.
- Avoiding becoming personally liable for certain debts.
- Gives the director a sense of control over the process.
- Allows directors to appoint a liquidator of their choosing
- Reduces the stress associated with running an insolvent company
- All creditor contact is placed in the hands of the liquidator
- Peace of mind that the company’s affairs are being wound up in an orderly and professional fashion.
If you have been considering placing your company into voluntary liquidation you should seek professional advice. We can help you to determine if your company is insolvent and discuss the potential benefits of making the decision to wind it up. We are available 24 hours 7 days a week on 1800 003 883for free and confidential advice.