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Court-ordered Liquidation
Guide your company through court-ordered liquidation.
In cases of unresolved debts, a court-ordered liquidation can be initiated by creditors, shareholders, or other vested parties to formally dissolve a company. This process involves the appointment of a court-approved liquidator who takes charge of assessing and selling the company’s assets, ensuring creditors receive payment according to priority guidelines.
Court-ordered liquidation provides a structured method for bringing a company’s operations to a close and fulfilling its financial obligations in a transparent and orderly manner.
Generally, liquidation occurs when a company is unable to meet its debt obligations, indicating insolvency. This formal process involves systematically concluding the company’s business and transferring control to a third-party liquidator.
The liquidator steps in to handle the company's assets, settle debts, and manage outstanding financial issues on behalf of those previously managing the company.
TTJ will guide your company through court-ordered liquidation.
Why is a liquidator necessary for Court-Ordered Liquidation?
Investigate Company Failures
Identify the causes behind the company’s collapse.
Inform Creditors
Provide clear and detailed updates to creditors.
Identify Legal Breaches
Detect any violations or offences by directors or officers.
Report to ASIC & Prioritise Payments
Submit findings to the Australian Securities and Investments Commission and Allocate any available funds to creditors in the correct priority order.
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Frequently Asked Questions
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The Court Liquidation Process - Simplified
01
Creditor Demand
A creditor who is owed money issues a Statutory Demand to a company. The company has 21 days to pay or dispute it in court.
02
Court Application
If unpaid, the creditor applies to the court within three months to wind up the company.
Court Decision
A judge reviews the case, and if approved, appoints a liquidator to manage the company’s closure.
03
04
A Liquidator’s Role
The liquidator secures and sells company assets, then distributes the proceeds to creditors according to the designated priority order.
05
Director Cooperation and Reporting
Directors must assist the liquidator. The liquidator investigates, reports to creditors, and flags legal issues with ASIC.
