No matter the country or the field of operation, all business owners dread the prospect of liquidation – Australia is no exception. Even if this continent was somewhat less affected by the economic crisis that took place several years ago, companies can still shut down. Success is business does not always depend on the general situation of the economy. Closing down the entire business is a drastic step and it is normally taken when no other option works. Going through the liquidation process is never pleasant, but, should this happen, you need to know everything about its implications and be as informed as possible. For best results, ask a professional liquidator in Sydney about the details that matter. The more you know, the less you are exposed to risks and you can have better control over the liquidation process.
Before hiring a liquidator in Perth, there are a few things that you should be aware of. Although this might sound too obvious, liquidation is the process that terminates a company’s activity. Some people imagine that this only partially limits its activity, but, unfortunately, it is not true. The harsh reality is that after liquidation is complete, the company no longer exists. From the moment liquidation begins, the sole purpose of the business is to complete this process and all efforts will be made in that direction. In addition, once a liquidator is appointed (either by the court or by the directors), the company’s directors no longer have the power to make decisions. In addition, the company cannot sell the assets it owns. In other words, the liquidator will take control over the business and run it instead of the managers.
Since the company will no longer continue its activity, employers are likely to lose their jobs. In this case, the liquidator will inform the staff of all the changes. An aspect you should be aware of is that in case of liquidation fixed term contracts are no longer valid. Employees who were working under such contracts will be informed of the breach and, depending on the loss, they will be compensated. One of the benefits of having a professional liquidator is that, after this happens, no one, not even creditors, can file claims against the company in court without his permission. Another implication that derives from liquidation is the selling of all company assets and the distribution of the money gained from this. There is an order for using this money. Firstly, the liquidation expenses must be paid. Secondly, there is the obligation to pay the wages of the staff. The rest of the money goes to unsecured creditors, as well as debt to shareholders. The liquidation process can often be very stressful for company managers, mainly because it brings an end to their contribution to that company. To avoid making the process more complicated, it is essential to appoint experienced liquidators. You can do this by checking the websites of professional companies in Australia, such as FixMyCompany.com.au.