Debtor
Instigated Corporate Insolvency – Liquidation / Deregistration
Where the directors of a company are aware that the company is insolvent
– and wish to do something about it, a debtor instigated insolvency
administration will arise. We have the skills and experience to provide
various strategies to assist and support companies to meet these challenges.
Where
the company and its core business is worth saving, the strategies
may include Voluntary Administrations or informal arrangements. Where
the situation is such that recovery is not feasible, liquidation or
de-registration may be the most appropriate options.
Melsom
Robson approach each task with a view to finding the best solution
for debtors as well as the creditors. This approach has seen the firm
become one of Western Australia's leading specialist insolvency firms,
being sought by insolvent businesses as well as creditors of those
entities.
Creditor
Voluntary Liquidation
Generally undertaken when a company is unable to trade on. Liquidations
normally spell the end of the company's life. The liquidator's function
is to realise the assets in the most beneficial manner for ordinary
unsecured creditors.
Voluntary
Liquidations commence as a consequence of a special resolution at
a duly convened meeting of members. There are two types - members'
voluntary liquidations, wherein the company is solvent and will pay
all its debts in full, and creditors' voluntary liquidations, wherein
the company is insolvent.
In
a creditor's voluntary liquidation, a meeting of creditors must be
held shortly after the member's meeting to give the creditors the
opportunity to appoint their own Liquidator should they so desire.
There
are two other methods by which a company may progress to a creditors'
voluntary liquidation - where creditors refuse to accept the company's
proposal for a Deed of Company Arrangement, or where a Deed of Company
Arrangement fails, and creditors resolve that the company be wound
up. In each of those cases, the Administrator or deed Administrator
generally becomes the Liquidator.
Deregistration
This is the simplest way to dispose of an unwanted company. However,
it is really only appropriate if the subject company has no assets
at all.
When a
company is deregistered, it ceases to exist as a separate legal entity
and any property that it has vests in the ASIC. Hence, where assets
exist, voluntary liquidation is often the better option, to enable
distribution of assets and a return of capital prior to deregistration.
