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Liquidations Are Just as Easy in Lockdown

Aug 19, 2021 | Written by Brad Vincent

As the delta variant of COVID-19 continues to cause more lockdowns around Australia, we thought we’d confirm that Dissolve is observing the Stay at Home orders but still fully operational.

Our phone lines are staffed so we’re just as capable of offering our usual high standard of free, confidential up front advice as ever. While face to face meetings are not possible, we are happy to offer advice on the phone or over a video conference if you prefer. We also offer live chat advice on our website, staffed by real people.

Our liquidation service was set up to be fully functional over telephone and email. Our service is contactless, and Covid safe by design.

Why Liquidate Now?

  • Get in While the ATO are Going Easy

We’ve mentioned in previous blogs that liquidations are down by 50% when compared to pre Covid times. Now that the government protections have been stripped away, it has become clear that the relaxed attitude the ATO are taking to debt pursuit is a major factor in the low insolvency rates. The ATO have given talks confirming that they give special consideration to companies affected by Covid lockdowns.  So whilst the ATO may have grounds to pursue the directors of the company, they are less likely to at the moment. For example we’ve not heard about a new Director Penalty Notice being issued since early 2020.

  • Allow Employees to Access the Fair Entitlements Guarantee (FEG) scheme

If a company gets to a position where it can’t pay employee entitlements, putting the company into liquidation allows the employees to claim in the governments fair entitlement scheme to cover those entitlements. We have FEG scheme experts on staff who will be happy to guide employees though the process.

Considerations for Liquidations in Lockdown

  • Returning signed documents

We can act on a copy of the original appointment documents. We prefer a scan but we can accept smartphone photos of signed documents if you have no other option in lockdown.

  • Paying the fee

It can be tricky to get to a bank in lockdown. We have recently employed the services of Stripe, one of the worlds largest and most trusted secure payment gateways, to offer secure online credit card payments. Just follow the link on your invoice. We also accept direct deposits from internet banking. Remember to send us a proof of payment to speed up the process.

  • Providing books and records

A common roadblock to starting a liquidation in lockdown is the company’s accountant is not available. Right after commencing the liquidation, the liquidator will ask the director to supply the company’s books and records. The main thing a liquidator is looking for here is access to the company’s accounting data. More often than not that is stored in the cloud these days. In most situations the director can provide that access without needing the accountant’s intervention.

As mentioned above, our query lines are open. Feel free to give us a call on 1300 050 040, drop us an email at [email protected], or request a live chat through the button in the bottom right on our website. We have staff ready to help.

Brad Vincent

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.