Business Liquidation: 3 things you should know about company liquidation
Author: John Coorey
When you are considering business liquidation or company liquidation, there are so many things going through your mind. You are probably worried about being able to pay your employees and suppliers, and wondering if there will be enough money to go around to pay all of the stakeholders in the business, the creditors and the shareholders. Generally speaking, there normally isn’t enough funds to go around to pay everyone, so the business liquidation expert will need to do their job and divide the money equally amongst all affected stakeholders.
Business Liquidation specialists slammed by ASIC
ASIC looked into business liquidation practices in 2012 and found that 47% of Declarations of Independence were inadequate, 23 external administrations required corrective action and 169 company liquidation projects completed without lodging a 533 review report.
Does poor bookkeeping hurt a business liquidation?
Many owners of a company are very worried that they haven’t kept their accounting and business books in correct order prior to a company liquidation. This can be a big problem if ASIC performs a review and the books are not well kept. It is always recommended to keep your books in perfect order as a good business practice, because when the business liquidation comes, you will get found out.
Who to appoint for your company liquidation?
Before 2010, it was painful to appoint a liquidator to perform the business liquidation. Nowadays, in Australia, an administrator can be appointed in a few hours, so the process is no longer as bad as it used to be.
What does this mean for you when completing your company liquidation?
When you are considering a business liquidation, of course you should first seek professional advice. But just keep the above points in mind as well. If you have a lot of surplus stock and want to sell it before the company liquidation, get in touch with us and we can buy your liquidation stock.