How to Liquidate a Deregistered Company
From time to time we’ll get a call from a director wanting to put their company into liquidation. We get most of the way through the discussion only to discover their company is at “Deregistered” status with ASIC. We then have to explain the liquidation cannot proceed until ASIC agree to reactivate the company.
What Does Deregistered Mean?
A company usually ends up being deregistered by ASIC because it has not paid the annual registration fee. ASIC currently tends to give a company one year’s grace. If the next renewal rolls around and you still haven’t paid the previous year’s fee, ASIC starts the process to deregister the company.
You will know the process has started because ASIC will advertise it on the ASIC Insolvency Notices website, and the status of your company moves to “Strike off in Progress”. From the date of the advertisement, they give you two months to take action or your company is moved to “Deregistered” status.
My Company is Deregistered, What Can I Do?
Your first point of action if your company is Deregistered and you need to liquidate it, is to approach ASIC to request reactivation – we’ve provided a link below to start that process.
When ASIC receives your request, they will send you the necessary application form within 28 days. They will ask you to complete the application and pay any unpaid fees to reactive the company.
Reactivation is at ASIC’s discretion. If you are denied reinstatement when trying the direct approach, option B is to have a lawyer apply to court to have ASIC reactivate the company and appoint a liquidator to the company. Check with a lawyer but I usually the two actions can be combined into one application.
Once you receive confirmation the company has been reactivated, let us know and we can commence the liquidation process.
Resources:
ASIC Connect – check your company status: http://asicconnect.asic.gov.au
ASIC Insolvency Notices – check for a deregistration notice: https://publishednotices.asic.gov.au/
ASIC info page on Reinstating a deregistered company: https://asic.gov.au/for-business/closing-your-company/reinstating-a-deregistered-company/
Brad Vincent
Brad is the Senior Advisor at Dissolve. After 10 years of being an advisor, Brad has developed an excellent understanding of the legal and practical issues facing a director of an insolvent company – it is rare for a director to throw a new situation at Brad. You will find him understanding and sympathetic, but above all practical. Brad will provide the cool head in a stressful situation.
