Non-payment of debts.

Recovery action by the ATO and Directors' Penalty Notices.

Directors, shareholders or investor disputes.

Any action by a creditor pursuant to a statutory demand.

Directors at riskof insolvent trading action.

Creditors concerned that assets are being removed from the company.

Requires an application to the Court by creditors, members, the company itself or any other interested party.

Usually takes 30 days for company to be wound up from the date of the application.

Provisional Liquidator can, where appropriate, be appointed immediately.

A Provisional Liquidator is a caretaker of the assets until the company is fully wound up.

Liquidators' take control of the assets to realise them and disburse the funds to creditors in accordance with established priorities.

Liquidator investigates the affairs of the company and reports any offences and any other relevant matters to the ASIC.

Can result in the payment of unpaid liabilities of the company.

Independent person takes control of the assets of the company and realises the assets.

The directors' activities and the company's affairs can be properly investigated.

Certain transactions can be recovered by a Liquidator for the benefit of all creditors.

In some cases, insolvent trading actions can be taken against the directors for recovery of funds for the benefit of creditors.

There is no preferential treatment of creditors.

Secured creditors are still able to exercise their rights.