The Different Types of Liquidation

There are different types of liquidation in Australia, and understanding your options is crucial if your business is facing financial difficulties. There are several types of liquidation, including voluntary liquidation, creditors’ voluntary liquidation, compulsory liquidation, and members’ voluntary liquidation.  Each type of liquidation has its own rules and procedures, which are set out in the Corporations Act 2001.

At the Liquidation Advisory Centre, our expert team of AFSA and ASIC registered advisers with over 30 years of experience can guide you through the complexities of liquidation.  We can help you understand the different types of liquidation in Australia and the risks associated with each.

Voluntary Liquidation Australia

Voluntary liquidation in Australia is a process that enables a company to wind up its affairs and distribute its assets to its creditors.  The company’s directors initiate this process, often used when the company is insolvent or can no longer operate profitably.

Creditors Voluntary Liquidation

Creditors’ voluntary liquidation is a process that enables a company to wind up its affairs and distribute its assets to its creditors.  The company’s creditors initiate this process, with the cooperation of the company directors and stakeholders.

Compulsory Liquidation Australia

Compulsory liquidation in Australia is a process that is initiated by a court order.  This process involves the appointment of a liquidator who takes control of the company’s affairs and sells its assets to repay its debts.

Types of Liquidation and Liquidation Options

Liquidation is not always the best option for companies facing financial difficulties. Alternative options are available and should be considered by company directors and stakeholders.  These include voluntary administration or business restructuring.  At the Liquidation Advisory Centre, we can help company directors consider all their options carefully before entering into liquidation and choose the best outcome for all parties.

Members Voluntary Liquidation

Members’ voluntary liquidation is a process that enables a solvent company to wind up its affairs and distribute its assets to its shareholders.  The company’s directors initiate this process with the help of a liquidator.

Need more information about Liquidation?

“There are different types of liquidation in Australia, and understanding your options is crucial if facing financial difficulties.  Company stakeholders can make informed decisions about their financial future by working with insolvency practitioners.

The Liquidation Advisory Centre offers information and advice to help companies and stakeholders make informed decisions about their financial future by understanding the legal framework of liquidation and their obligations to creditors.

If you need liquidation advice in Sydney, Melbourne, Brisbane, Perth or anywhere around Australia, we can help you make informed choices and choose the best path for your business.”