Creditor’s Voluntary Liquidation
The majority of people who call us have insolvent companies (but aren’t always aware of it) and are looking for someone to wind them up quickly and cost effectively.
They need a Creditors Voluntary Liquidation.
What is a Creditor’s Voluntary Liquidation?
A Creditors Voluntary Liquidation (CVL) is the winding-up of a company when it has creditors it cannot pay.
A CVL is initiated by passing a Special Resolution of the company’s shareholders. Our streamlined CVL process allows you to pass the necessary resolutions to commence the liquidation within minutes usually by just signing the documents we send you (depending on the complexity of the company’s structure).
We conduct hundreds of CVLs every year. Our highly systematised approach allows us to complete the process for small to medium businesses quickly and efficiently, and therefore at the lowest possible cost.
Click here for the full guide.
Appointing a Liquidator (Day 1)
The Director(s) and Shareholder(s) sign the standard resolutions and return them to us – you’ve appointed the Liquidator as soon as the last shareholder signs.
We lodge various appointment documents and advises various government organisations, such the Australian Tax Office and state government revenue offices, of the appointment;
The Director(s) complete a Questionnaire and deliver the books and records of the company to the Liquidator;
The Liquidator collects and sells the remaining assets of the company;
The Liquidator prepares an initial Creditors Report which advises creditors of the appointment.
The Liquidator reviews the books and records and reports findings to the regulator;
The Liquidator prepares a Statutory Report to Creditors within three months of the appointment date to inform creditors of the progress of the Liquidation and whether creditors are likely to receive a dividend payment from the Liquidation;
If the Liquidator has funds available he will pay a Dividend to creditors.
Finalising the liquidation (A further 1 to 3 months)
The Liquidator may send a Final Report for Creditors;
The Liquidator will lodge various documents with the regulator and request permission to deregister the company.
Yes, there can be variations from the above but the above is accurate for around 80% of liquidations we’ve done. Statistics tell us that other liquidators can take years to complete the same process.
Making the decision.
Deciding to liquidate a company can be difficult and stressful. We understand your business means a lot to you, and letting that go can be hard.
But a liquidation can also help in the following ways:
We deal with the creditors. As soon as you appoint us as liquidator, you don’t have to avoid calls from company creditors any more. Put them straight on to us – we’re used to the yelling.
You can move on from dealing with the stress of an insolvent company.
Protect your personal assets. Liquidation is often the best way to protect yourself and avoid personal liability for company debts.
We have experienced, sympathetic advisors standing by to take your call and talk you through the process.
Speak to an expert today.
Simple steps with our experts.
Get your 30 minutes free, confidential advice. It’s obligation-free. In one call we can assess if liquidation is right for your company. If it is, we’ll give you a free written quote.
Give us the go ahead and we will draw up the documents and email them to you, usually within two hours.
All directors and shareholders sign and date the forms where marked, and you then email them back to us with proof of payment for the agreed fee.
The company is now in liquidation. We now deal with the creditors on your behalf.