The following information is brought to you by a lawyer from David Chang Legal. Interview with Ji Hoon Chang.
Liquidation is the process of winding up and finalising a company’s affairs. A liquidation is conducted under the Corporations Act. It usually involves the collection of assets, the undertaking of investigations, and the distribution of funds to creditors and then shareholders.
Liquidation is often a very good option for a director. Being a director of an insolvent company is stressful and worrying. A director will be facing pressure from employees, shareholders, the bank and creditors.
A liquidation will often help protect a director from Insolvent Trading and relieve a director’s worry and stress by legally bringing the affairs of the old-company to a close.
The interview of this story is now available on the podcast above.
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