Winding-up Your Business
There are plenty of reasons why businesses choose to wind-up. And after the year of economic disruption which we’ve all been through, it may be the most prudent course of action to take.
Before deciding to wind-up, it’s vital you get expert advice about how to protect yourself as business owner or director.
At Doug Constable Group, we can help you determine the right path to take, whether it be voluntary liquidation or restructuring your business to continue trading under new Federal government rules to help struggling business.
Should You Consider Winding-Up?
There are some tell-tale signs a business may be on the road to winding-up. Most often, the business will be experiencing financial distress in one of the following forms:
- Struggling or unable to pay company tax
- Struggling or unable to pay employees
- Struggling or unable to recover money owed to your business
- Creditors hassling for payment of debts
These are all indicators that a business is insolvent and under Australian Law, it is illegal to trade whilst insolvent.
However, new laws put in place by the Australian government give businesses greater breathing space when dealing with creditors and more scope to continue trading.
If you’re after expert advice about how to deal with a business in financial distress, get help now by contacting Doug Constable Group today on 1300 93 4357.
How Does Winding-up Work?
In most instances, winding-up will involve appointing a Liquidator, or in the case of a court-ordered liquidation, one will be appointed. It then becomes the Liquidator’s job to take control of your company and begin to sell the assets to repay creditors.
Unfortunately, many businesses only seek help from an insolvency expert after this has taken place and a Liquidator has taken charge of the business.
By then, you’ve got little to no control over the process. If you’re considering winding-up your business and want expert advice on how to avoid a painful insolvency, contact Doug Constable Group today on 1300 93 4357.
Is Your Business Insolvent?
Put simply, insolvency is when you can’t pay your bills or debts on time. If your company is found to be insolvent, under Australian law you are no longer allowed to conduct business.
However, there are new rules put in place to assist businesses survive through the economic aftermath of the COVID-19 crisis. These new rules can help you keep your business afloat and trade out of insolvency.
If you need help figuring out if your business can recover, or needs to consider winding-up contact Doug Constable Group today on 1300 93 4357.