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Rules for liquidating a company aura dating

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Creditors' meetings during liquidation Voting at a creditors’ meeting How will I get paid in a liquidation? It involves realising the company’s assets, cessation or sale of its operations, distributing the proceeds of realisation among its creditors and distributing any surplus among its shareholders. Information sheets A liquidation is the orderly winding up of a company’s affairs.It is then up to those suppliers to make an informed decision as to whether to provide credit to the new entity.It is important to understand that there is no general prohibition on directors starting out again, even with an essentially identical business which has risen from the ashes of the old, like the mythical "Phoenix".The liquidator’s role is to: Except for lodging documents and reports required under the Corporations Act, a liquidator is not required to do any work unless there are enough assets to pay their costs.If the company is without sufficient assets, one or more creditors may agree to reimburse a liquidator’s costs and expenses of taking action to recover further assets for the benefit of creditors.Instead the law seeks simply to ensure that suppliers are not misled or confused as to which entity they are dealing with, and are aware of any insolvency and also any related sale of assets to a new company.The 'phoenix company' rules were only introduced into the Companies Act in late 2007 at Sections 386A to 386F.

After the solvency declaration has been lodged, the company members must make a special resolution to wind up the company.

You can do this by lodging a Notification of resolution (Form 205).

They must also lodge a Notification of appointment or cessation of an external administrator (Form 505) to advise of a liquidator's appointment.

In this case, if additional assets are recovered, the liquidator or particular creditor can apply to the court for the creditor to be compensated for the risk involved in funding the liquidator’s recovery action.

If a liquidator suspects that people involved with the company may have committed offences and the liquidator reports this to ASIC, the liquidator may also be able to apply to ASIC for funding under the Assetless Administration Fund to carry out a further investigation into the allegations.