How Long Do Company Liquidations Take?

How Long Do Company Liquidations Take?

A company liquidation is a difficult decision to make and has lasting impacts on your company. Once you have decided that your company will permanently close and you wish to apply for a company liquidation, you might be wondering how long this process will take.

We cannot give you a specific timeframe, as each company liquidation is different but we can give you a guide.

The liquidator will be required to go through a number of tasks which are mandated by law. The first task in any liquidation is to record the appointment of the liquidator with the Australian Securities and Investments Commission (ASIC). After recording the liquidation with ASIC, the liquidator must notify creditors of the liquidation within 20 business days and then prepare a more thorough report within 3 months of their appointment. After that the liquidator needs to file a report with ASIC within 6 months of their appointment. In some cases, ASIC requires a supplementary report from the liquidator. If a supplementary report is requested by ASIC, the timeframe within which the liquidation can be finalized will be pushed out.

In a simple case, where no supplementary report is requested by ASIC a liquidation can be finalized within around 12 months. If complex issues are identified the timeframe could become a number of years.

At Australian Company Liquidations, we pride ourselves on providing high-quality customer service and assistance with your liquidation needs. For more information, call our office at 1800 731 155, or visit our website for more details on company liquidation and the process.