Members Voluntary Liquidation v Deregistration
Company Deregistration is simpler, quicker and cheaper than a members’ voluntary liquidation. So why not always choose company deregistration?
An application for deregistration can only be made when all of the following conditions are met:
- all the members of the company agree to the deregistration; and
- the company is not carrying on business; and
- the company’s assets are worth less than $1000; and
- the company has paid all fees and penalties payable under the Corporations Act; and
- the company has no outstanding liabilities; and
- the company is not a party to any legal proceedings.
Also try answering the following questions:
- Do you want a high level of assurance that a company cannot be reinstated?
- Did the company operate in a high-risk industry, for example, where public liability claims sometimes arise?
- Will any franking credits or tax free dividends be lost by the deregistration of the company?
- Are there any outstanding issues the company is still dealing with?
If you said “Yes!” to any of the above questions, then we recommend a members’ voluntary liquidation rather than a company deregistration. Why not CALL US NOW for CONFIDENTIAL FREE ADVICE specific to your situation
Want to know more about winding up a solvent company? Visit these pages :
- Member’s Voluntary Liquidation (MVL)
- The MVL Process
- Effects of an MVL
- Voluntary Deregistration
- Forced Deregistration
- Who can act as Liquidator?
If you would like to learn more about the Members’ Voluntary Liquidation, please access our full Members’ Voluntary Liquidation guide created by Insolvency Solutions Group’s specialists explaining this in detail.