What type of businesses does Cerney Associates Limited assist?Edward Cerney2024-08-16T17:31:42+02:00
What are a director’s responsibilities if a company is being liquidated?Edward Cerney2021-04-27T20:53:47+02:00
The company director is required to cooperate with the liquidator during the insolvency process by promptly completing their Report as to Affairs form and providing all required company books and records.
What can I do if I have a winding up order against my company?Edward Cerney2021-04-27T20:53:34+02:00
Winding up is a process where a company’s outstanding matters are finalised, its assets are liquidated and it ceases to exist as a company. If you have received a winding up order, then ideally you should pay the debt or prove that you are solvent to the courts and creditors.
What is an Insolvency Company?Edward Cerney2020-11-14T16:10:14+01:00
An insolvent company is one that is unable to pay its debts when they fall due for payment. The three most common corporate insolvency procedures are: voluntary administration, liquidation and receivership.
What is insolvent trading?Edward Cerney2020-11-14T16:09:33+01:00
Insolvent trading is the law under the Corporations Act section 588G that says that if a company is insolvent and a director allows the company to incur a new debt, then the director can be personally liable for the new debts incurred.
Can I set up a new company and be a director if I’ve recently placed a company into liquidation?Edward Cerney2020-11-14T16:08:32+01:00
This is possible although should not be something that becomes a regular strategy. You should seek professional advice as this process requires careful planning.
A company I’m a shareholder in has gone into liquidation. Do I need to do anything?Edward Cerney2020-11-14T16:07:29+01:00
You will need to seek tax advice as to how this situation will affect you. Liquidators that are appointed by the court are not required to keep shareholders updated on the status or outcome of the liquidation.
When is a company director liable for the debts of the company?Edward Cerney2020-11-14T16:06:44+01:00
The company director is usually not liable for the company’s debts unless they have personally guaranteed debts, have an expired Director Penalty Notice from the Taxation Office (prior to when an administrator has been appointed), they have been found guilty of insolvent trading, or owe certain personal liabilities.
I am owed money but the person has gone bankrupt. Does this mean I won’t get paid what is owed?Edward Cerney2020-11-14T16:05:59+01:00
This depends on the amount of money that can be obtained from the trustee in bankruptcy who is selling the bankrupt’s assets and from any cash amounts the bankrupt holds. Often you will just be paid a percentage of what is available if there is insufficient money to pay all creditors.
One of my creditors is threatening legal action against my company but my bank is refusing to grant any more credit. What can I do?Edward Cerney2020-11-14T16:04:20+01:00
One option is to use equity in your property to organise a short-term loan. You will need to seek professional advice for this strategy.