WHAT IS A COMPANY LIQUIDATION? A company liquidation is the legal and orderly process of winding up and bringing to an end the affairs of a company. There are two types of liquidation: Creditors’ Voluntary Liquidation, which is initiated by a company’s directors or creditors on a voluntary basis; and Compulsory Court Appointed Liquidation. A liquidation is only necessary for an incorporated company (i.e. a Pty Ltd or Ltd company). If you operated as a sole-trader or partnership, other insolvency services are more appropriate; for example, bankruptcy or a debt agreement. Complete a Bankruptcy Test WHAT IS THE PURPOSE OF A LIQUIDATION? The purpose of a voluntary liquidation is to legally wind up the affairs of an insolvent company. The purpose of investigating a company’s financial affairs are to identify: If the company made any unfair preferential payments to creditors in the last six months leading up to the liquidation; … Continue reading Frequently Asked Questions