Who Can Initiate Company Liquidation?

Описание: In Australia, company liquidation can be initiated by several different parties, depending on the situation.

⚖️ Who can start liquidation?

Creditors: If owed $4,000+ and a statutory demand is not paid within 21 days, they can apply to court for liquidation (common with ATO, banks, and suppliers)

Directors / Board: Can initiate a Creditors’ Voluntary Liquidation (CVL) if the business is insolvent

Shareholders (members): Can vote for a Members’ Voluntary Liquidation (MVL) if the company is solvent and able to pay debts

ASIC: May apply to court for liquidation due to breaches of law, failure to lodge returns, or in the public interest

The Court: Can order liquidation in cases of disputes, deadlocks, or on creditor/ASIC application

👉 Knowing who can initiate liquidation helps directors, creditors, and shareholders plan the safest exit, reduce personal risk, and avoid unexpected loss of control. The Insolvency Group provides expert guidance to ensure the best strategy for each situation.

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