Are you thinking about liquidating your company, but you aren’t sure if it is the right decision or not? If your business is struggling and you believe it may be insolvent or is teetering on the edge, here are some reasons why liquidating your company may be the best thing for you in the run long.
- Choose your own liquidator
When you choose to liquidate your company yourself, you have the opportunity to appoint your own liquidator rather than allowing a creditor to take charge and appoint a liquidator of their choosing. By choosing your own liquidator, you can appoint someone who you believe will act in a professional and commercial manner. It will also take away any surprises from a creditor approaching the courts to have a liquidator appointed.
- Avoid an insolvent trading claim
If you continue to trade your company and incur debts after it becomes insolvent then you are exposing yourself to personal liability under the Corporations Act. If you liquidate your company as soon as you become aware that it is insolvent then you will limit any potential claim for insolvent trading.
- Avoid legal action
Liquidation will also end any legal action which will bring peace of mind and stop the expense of legal fees.
- Put an end to the phone calls
Liquidation will also stop the hassling phone calls from creditors. As soon as you appoint a liquidator, the liquidator will become responsible for dealing with your creditors.
If you would like more information on company liquidations, or are considering one yourself, then please contact Australian Company Liquidations. We are registered company liquidators who offer a FREE 24/7 insolvency hotline for Australian directors seeking expert advice. Please call us on 1800 731 155 now.