At Dissolve we specialise in company liquidations and we are not part of a large accounting or audit practice. So you can be sure that we can act as Liquidator as we have NO CONFLICTS OF INTEREST. We say it is best not to use your auditor as your liquidator. But if you are considering that, read on to see who can legally act as the liquidator of your company. The Corporations Act dictates who can act as the liquidator of a company.
The general rule is that a liquidator must:
Where the company to be liquidated is a proprietary company, many of the above provisions do not apply. In the case of a proprietary company the liquidator must
So the legislation relating to the Members’ Voluntary Liquidation of a proprietary company is liberal in that a liquidator does not require any specific qualifications. However, the practicalities are quite different in that the process could involve the movement of large sums of money and there is a need to be concerned about a number of statutes such as the Income Tax Assessment Act, Fringe Benefits Tax Assessment Act and the Stamp Duties Act. Therefore, in practice, in the vast majority of cases the process is handed over to a registered company liquidator who will have the relevant experience.
In the past it was common practice for a company to turn to its auditor to act as liquidator of a company within the group. In recent years there have been a number of laws and ethical pronouncements of professional bodies that restrict the services an auditor can provide to an audit client. The pronouncements of the professional bodies and the laws of various jurisdictions are quite complex. Dissolve has the following view:
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.
As a general rule, a liquidator is given wide powers and responsibilities and so it is not necessary to involve the court in a members’ voluntary liquidation. However, during the liquidation a creditor or member may ask a court to address specific questions that arise in the winding up, review the liquidator’s remuneration or exercise any power that a court possesses in a compulsory winding up.
Also, at any time during a members’ voluntary liquidation the liquidator might form the opinion that the company will be unable to pay its debts in full, in which case they must either apply to the court for the official liquidation of the company, appoint a voluntary administrator or convene a meeting of creditors.
If you have any questions on this subject, why not call us for confidential, free advice.
Want to know more about winding up a solvent company? Visit these pages :
“I’ve now referred two liquidations to Dissolve and in both cases my clients were amazed at the ease of the appointment process and how quickly the liquidation was finished.”…
Partner of a Sydney Accounting Firm
“Cliff and his staff provided a fast, efficient and friendly service. The process was simplified and all steps were communicated well. The price was exactly as advertised with.”…
Director of a Property Development Company
“…after I gave Dissolve the go-ahead I received the No Asset Liquidation Package within two hours and I had the company in liquidation the next morning.”…
Director of a Fashion Retailer