Duties and Powers of a Liquidator
The role of a liquidator is quite onerous. A liquidator has four main duties:
- to realise the assets of the company and finalise its affairs;
- to pay creditors;
- to distribute the assets to the shareholder;
- to prepare accounts for submission to the shareholders and creditors and lodged returns with ASIC.
Some of the specific duties imposed on a liquidator are to:
- keep proper books and records;
- notify relevant tax authorities of the appointment;
- open a liquidator's bank account;
- prepare a balance sheet and accounts up to the date of liquidation;
- lodge income-tax returns at the close of every financial year that the company is in liquidation;
- pay dividends;
- cancel a variety of business registrations.
The liquidator is also granted wide powers under the Corporations Act and there is a great deal of Case Law dealing with the conduct of liquidators. Any proposed liquidator should make themselves very familiar with the full range of responsibilities and powers of a liquidator and the stringent duties imposed on the liquidator.
At Dissolve our appointees are Registered Liquidators with a wealth of experience. CALL US NOW for CONFIDENTIAL, FREE ADVICE.