BARRY HAMILTON & ASSOCIATES
MEMBERS VOLUNTARY WINDING UP
Keeping a private company registered with the Australian Securities & Investments Commission (“ASIC”) is often not cost effective, especially where the company has ceased trading and has no further business activities. The company may also have assets that can be more effectively distributed through a voluntary winding up.
The starting point is through your current accountant who will ensure all accounts are made up and returns lodged with the Australian Taxation Office (“ATO”). It is essential for a cost effective liquidation that as much work is done by the directors or their accountants before liquidation to ensure all business transactions are complete and the company is liquidation ready.
Some things you must consider before winding up a company include:
• 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 services 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).
• 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 has an extensive fact sheet that explains members’ voluntary liquidation. Please telephone or email Samantha Nightingale to obtain a free copy.
telephone 03 62244660