The liquidator’s main role is to protect, gather and realise the company’s assets.
The liquidator has to abide by the following duties:
To investigate the affairs of the company from its foundation onwards;
To act fairly;
To avoid placing him/herself in a position where there is a conflict of interest within their duties; and
To act with skill and diligence
Furthermore, the liquidator will investigate the following in the liquidation process:
Occurrence of Improper or Illegal Transactions
Investigate Books and Records
What Circumstance did the company become insolvent
Please note if books and records are not supplied, the company is deemed insolvent for the entire time.
In this process, the liquidator must collect all assets, if they have no allegiance over them, sell them. With regard to liabilities, the liquidator must discharge and release them.
The liquidator must abide by statutory requirements & they are:
The s478 which requires a Court Appointed Liquidator to collect the company’s property and discharge the company’s liabilities
The s501 which requires a liquidator in Voluntary Liquidation to be applied in satisfaction of its liabilities.
The Liquidators has a responsibility to bring the company’s affairs to an end. This process is accountable to:
The Court; and
Please note that creditors do include employees. Brisbane Debt Solutions are here to help you with Liquidation and have a wide selection of Liquidators that are perfect for you. Contact us today on 1300 88 70 93 for a free consultation.