Our guide to Voluntary Administration
What is voluntary administration? Voluntary administration is an insolvency procedure involving the appointment of an external administrator, known as a voluntary administrator. Usually it’s initiated by the company’s directors or by a secured creditor. Voluntary administration is a process for a business in financial strife and it helps determine the next best course of option for the […]
What is a provisional liquidator?
Provisional liquidation is a temporary measure used to protect the assets of a company in certain situations. The law on provisional liquidation allows the provisional liquidation process to be activated only under certain circumstances. Whether you’re a creditor, shareholder, or director of a company, you might be considering provisional liquidation to protect and preserve the […]
Business Restructure
Business restructuring is often used by distressed businesses to overcome their financial and operational issues in order to return to profitability and growth. In challenging markets, business restructuring can help businesses overcome issues like poor cash flow, thin profit margins, and stagnating growth. Developing a restructuring strategy that reflects your business needs is critical, as […]
Cost of a liquidation
Time, money and effort go into building a company. And the same is true when it’s time to wind up that company. If you’re considering winding up your business, liquidating assets or entering administration, you should first know the different types of liquidation and how much they could cost. 1. Winding up a solvent company […]
What qualifies for safe harbour protections?
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The insolvent trading law, as seen from the eyes of the Australian business community, was verging on draconian, penalising business failure heavily and stigmatising corporate insolvency beyond salvage. If, despite the best of plans, a business was heading for failure, the director had all the incentives to act conservatively rather than take bold decisions to lead the […]
Voluntary Administration for Creditors
Voluntary administration is executed over a series of steps, beginning with the decision to enter into voluntary administration, proceeding with the appointment of an administrator who investigates the status of the organisation, and culminating in creditors meeting to decide future courses of action. Let’s consider these processes in detail. Why is voluntary administration necessary? The […]
Voluntary Administration for Directors
As a director, you have legal duties and obligations to fulfill throughout the stages of your company’s life cycle. Going through voluntary administration can be difficult for company directors as it accentuates a range of legal implications. You’ll want to be aware and prepared for these, so you can continue to fulfill your obligations and […]
Safe Harbour for Directors
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It’s not unusual for company directors to fall into the trap of insolvent trading in an attempt to save their company from liquidation. And while this practice is illegal, in recent years new legislation has been introduced to protect company directors who are trying to turn their business around. This legislation is called ‘Safe Harbour’. […]
2018 in review
As we come to the end of the year, its been an interesting twelve months as we are seeing thing tightening up in terms of availability of finance, trading positions and the wider economic outlook. Hospitality Industry We have focused on this as an area of concern and are seeing more pressure as the banks have […]
A guide to business restructure
After restructuring, your business should become more profitable, organised and strategic – but only if you do it right. Changing any element of your business, such as legal aspects, ownership or operational structure, is referred to as restructuring. It’s a complex process to plan and implement, because it typically involves drastic changes that need to […]