Members Voluntary Liquidation v Deregistration
Company Deregistration is simpler, quicker and cheaper than a members’ voluntary liquidation. So why not always choose company deregistration?
An application for deregistration can only be made when all of the following conditions are met:
- all the members of the company agree to the deregistration; and
- the company is not carrying on business; and
- the company’s assets are worth less than $1000; and
- the company has paid all fees and penalties payable under the Corporations Act; and
- the company has no outstanding liabilities; and
- the company is not a party to any legal proceedings.
Also try answering the following questions:
- Do you want a high level of assurance that a company cannot be reinstated?
- Did the company operate in a high-risk industry, for example, where public liability claims sometimes arise?
- Will any franking credits or tax free dividends be lost by the deregistration of the company?
- Are there any outstanding issues the company is still dealing with?
If you said “Yes!” to any of the above questions, then we recommend a members’ voluntary liquidation rather than a company deregistration. Why not CALL US NOW for CONFIDENTIAL FREE ADVICE specific to your situation.
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