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Some transactions with an insolvent company can be "attacked" by a liquidator. If the liquidator goes to court and succeeds on the claim then the recipient of the "benefit" may need to repay the benefit(s) or perhaps pay compensation to the liquidator. These transactions are known as voidable transactions.

When a company is wound up in liquidation it is sometimes necessary for the liquidator to examine officers and employees of the (insolvent) company. This is done by way of a public examination on the examinable affairs of the company in question. To learn more read the article that follows.

When a creditor lodges a proof of debt with the liquidator it is possible the liquidator will reject some portion of the claim or the claim in its entirety. Litigant may be able to assist by either negotiating between the creditor and the liquidator (whether by acting for one or the other), or by assisting the creditor (or liquidator) in respect of any application made to the court regarding a rejected proof of debt. 

In some cases, such as in the insolvency context, it is necessary for a secured creditor to appoint a receiver over the assets (the subject of a security) because there has been a default under the security instrument. More seldom, the receiver is appointed where it appears the assets of the company may be placed in jeopardy.

When a company is placed into liquidation (aka a winding up order was made) then there may be a range of applications that take place as the affairs of the company are being brought to a close so as to realise assets, pay debts and if possible pay a dividend to creditors. Some of these applications are made to enlist the help of the court’s supervisory powers (i.e. supervisory) whilst others are made to bump up the amount of property available for creditors (i.e. increase assets).

A basic guide to winding up a company due to presumed insolvency as a result of non-compliance with a statutory demand.

A recipient of a statutory demand generally has 21 days to set it aside. During Covid-19, a longer and temporary period applies so that there will be 6 months to set it aside. Acting quickly is key otherwise the failure to respond can be used to prove the debtor company is insolvent

A basic introduction on what it involved in appointing a provisional liquidator and why and when it is done.

Here is a basic guide on how a statutory demand may be used for debt collection. We help only help with larger debts of $100,000 (or more).

A basic guide on what a voluntary administration is and how it works with links to detailed resources published by the government