Basics of a DOCA
Designed to maximise the chance of a company to continue its business, a Deed of Company Arrangement (DOCA) is a binding arrangement between the company and its creditors. Another purpose is to ensure that creditors receive a better return in the case of the company being wound up. Essentially, the DOCA helps the company avoid […]
Myth of a Liquidation
Liquidation is the winding up of your business with assets sold to pay creditors. While it’s a final option for shutting down the business, for struggling businesses this step can come as relief. However, myths still persist about liquidation. If you’re considering liquidation as an option for your business, it’s vital to debunk these so you […]
Creditor of a company in liquidation?
It’s not an enviable situation for anybody to be in, whether in their personal or business life; you’re owed money, and the person who needs to repay you can’t deliver it. If you’re trapped as a creditor in a situation where a business is winding down or has been liquidated, there are specific steps that […]
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 […]
Deed of Company Arrangement
What is a deed of company arrangement? A deed of company arrangement (DOCA) is a binding arrangement between a company and its creditors that governs how the company’s affairs will be handled if the company is at a risk of becoming insolvent or has already entered into voluntary administration. A DOCA can be used to […]
Cash flow management ideas
What is cash flow and why is it important? Cash flow is the total amount of money that you have coming in to your business from revenue and going out for expenses. Managing cash flow is an essential part of running a business. It is particularly important for new businesses because if you can’t manage […]
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?
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 […]