Creditors’ voluntary winding up – fundamentals – flowchart

(24 June 2015: copyright P J Keenan)

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OVERVIEW OF  Creditors’ Voluntary Winding up IN AUSTRALIA

Resolutions by shareholders to wind up the company and to appoint a liquidator

Liquidator takes control of business, property and affairs

Liquidator prepares report of proposed remuneration

Liquidator makes declarations of indemnities, up-front payments and relevant relationships

Directors’ statement about business, property, affairs and financial circumstances of company (Report as to Affairs)

Meeting of creditors (possible committee of inspection; fix remuneration of liquidator; confirm or change liquidator; etc.)

Investigations, realisations of assets and unpaid share capital, recovery of property and (possibly) recovery of compensation	Liquidator’s statutory reporting, accounts and returns
Examination and determination of creditors claims	Payment of expenses and liquidator’s remuneration
Distribution of residual funds to creditors	Annual meeting of creditors or annual report

Final meeting of creditors and shareholders

Deregistration of the company

LAW: Corporations Act 2001, Chapter 5; Corporations Regulations 2001.
PRACTICE STANDARDS: The Third Edition of the Code of Professional Practice of the Australian Restructuring Insolvency & Turnaround Association

 

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