Members Voluntary Liquidation - free fact sheet
Maintaining the registration of a private company with the Australian Securities and Investments Commission (“ASIC”) is often not cost effective, particularly when the company has ceased trading with no ongoing business activities. In such cases, opting for a voluntary winding up may prove more efficient, especially if the company has assets that can be better distributed through this process.
The initial step involves consulting your current accountant, who will ensure that all accounts are prepared, and necessary returns are submitted to the Australian Taxation Office (“ATO”). To facilitate a cost effective liquidation, it is crucial for the directors or their accountants to ensure all business transactions are complete and the company is fully prepared for liquidation.
Before initiating the winding up process, several considerations must be taken into account:
- Make sure all insurance policies are correctly terminated, especially if run off cover is required;
- Where possible, ensure all creditors are paid and accounts closed including telephone, essential utilities etc;
- Finalise BAS lodgements (if required) – your accountant will assist you in this matter;
- Make sure there are no outstanding issues, including claims before the Court (even if such claims are subject to insurance indemnity); and
- If assets are to be transferred and funds are to be borrowed you need to discuss this with the liquidator so all timing issues are capable of being met.
Our office provides an extensive fact sheet that explains members’ voluntary liquidation. Please feel free to contact Samantha Nightingale via telephone at 03 62244660 or through email at reception@hcatas.com.au to obtain a complimentary copy.
