Voluntary Liquidation

This approach consists of winding up the affairs of the company where the directors and shareholders have determined that due to the insolvency of the business, they no longer wish to continue trading. A Creditors Voluntary Liquidation is also possible where a company has been placed into Voluntary Administration and a proposal for a Deed of Company Arrangement has not been accepted by creditors.

Benefits:

• The appointment is made voluntarily by the directors and shareholders.
• The appointment can be made expeditiously where the appropriate notice period is otherwise waived by the required majority of shareholders.
• Allows for an independent insolvency practitioner to investigate the affairs of the company, realise assets, make recoveries of uncommercial transactions and make a distribution to creditors in accordance with the Corporations Act.

Jones Partners can advise clients whether this is the most appropriate mechanism to deal with the
company’s debts and, if so, can act as Liquidator of the company.