Why does Insolvency matter to you?
If directors of an Australian company have reason to believe their company is or might become insolvent, and they allow trade to continue and incur debt, they may be in breach of their directors’ duties. Directors are personally liable for company debts if found guilty of insolvent trading. Financial penalties can be severe. As a director and business owner there are warning signs of insolvency you should know about. For more information check out the FAQ page.
As a business owner you are obviously entrepreneurial and failure is not an option. But the reality is – some businesses do fail. The cause is not always something you can control. Market forces, global pandemics like COVID-19, debt funding arrangements or a cost blow-out on that big job can make your business struggle! Do not just hope. Be proactive. That is how you built your business. Do not be afraid to seek expert assistance.
How we can help
Our vision at Auxilium Partners is to provide solutions that don’t cost too much. You may have heard about the processes below. These may not be the only choices. Use our expertise to get you the best way forward.
A voluntary administrator can take control of the company to work out a way, if it is possible, to rescue the business. Always employ a qualified and experienced Chartered Accountant or Liquidator. Ask to see their qualifications. The “Safe Harbour” provisions of the Corporations Act (Cth) may also be useful. A director-initiated liquidation has a strict process to follow. Be aware, liquidation may not be your best first step.
A company “in receivership” has a receiver appointed by a secured creditor who holds a security interest over some or all the company’s assets. Auxilium Partners can advise company directors before or after the appointment of a receiver.
Bob Jacobs is registered by ASIC to be appointed as administrator or liquidator. With his awesome team he will outline how to achieve the most successful cost-effective outcome for you. Ideally contact us early – when your business is just a bit unwell – before it needs an ambulance! First meeting is free.