What is a Creditor’s Voluntary Liquidation?
A Creditors Voluntary Liquidation (CVL) is the winding-up of a company when it has creditors it cannot pay.
A CVL is initiated by passing a Special Resolution of the company’s shareholders. Dissolve’s streamlined CVL process allows you to pass the necessary resolutions to commence the liquidation within minutes usually by just signing the documents we send you (depending on the complexity of the company’s structure).
Dissolve conducts hundreds of CVLs every year. Our highly systematised approach allows us to complete the process for small to medium businesses quickly and efficiently, and therefore at the lowest possible cost.
Appointing a Liquidator (Day 1)
The days following appointment (Days 2 to 10)
Dissolve lodges various appointment documents at ASIC and advises various government organisations, such the Australian Tax Office and state government revenue offices, of the appointment;
The Director(s) complete a Questionnaire and deliver the books and records of the company to the Liquidator;
The Liquidator collects and sells the remaining assets of the company;
The Liquidator prepares an initial Creditors Report which advises creditors of the appointment.
The Liquidator’s tasks (1 to 3 months)
The Liquidator prepares a Statutory Report to Creditors within three months of the appointment date to inform creditors of the progress of the Liquidation and whether creditors are likely to receive a dividend payment from the Liquidation;
If the Liquidator has funds available he will pay a Dividend to creditors.
Finalising the liquidation (A further 1 to 3 months)
The Liquidator may send a Final Report for Creditors;
The Liquidator will lodge various documents with ASIC and request that ASIC deregister the company.
Yes, there can be variations from the above but the above is accurate for around 80% of liquidations done by Dissolve. ASIC statistics tell us that other liquidators can take years to complete the above process.
Making the decision.
Deciding to liquidate a company can be difficult and stressful. We understand your business means a lot to you, and letting that go can be hard.
But a liquidation can also help in the following ways:
Speak to an expert today.
Simple steps with our experts.
Get your 30 minutes free, confidential advice. It’s obligation-free. In one call we can assess if liquidation is right for your company. If it is, we’ll give you a free written quote.
Give us the go ahead and we will draw up the documents and email them to you, usually within two hours.
All directors and shareholders sign and date the forms where marked, and you then email them back to us with proof of payment for the agreed fee.
The company is now in liquidation. Dissolve now deals with the creditors on your behalf.