We understand that the concept of insolvency can sometimes be confronting. But if your company is experiencing financial difficulties it is imperative that you act early, and seek expert advice before creditors step in and commence winding up your company.
Rothwell’s team of lawyers and solicitors are the insolvency specialists. We can assist you in all areas of insolvency, including:
In simple terms, the Corporations Act states that a company will be insolvent if they are unable to pay their debts as and when they become due and payable. When the matter reaches court however, there are many elements to be considered before a company is determined to be solvent or insolvent.
The easiest way to prove that a company is insolvent is to issue a Creditor’s Statutory Demand on a company. This Demand must comply with Section 459E of the Act and allows a company a period of twenty-one days to challenge the demand or to pay the debt. If the debt is not paid within twenty-one days, a creditor is able to commence court proceedings for the company to be wound-up as insolvent.
Our insolvency experts will always explore every option provided by the Corporations Act before insolvency is declared. In some cases, a company’s financial problems can be resolved by a Deed of Company arrangement or the appointment of receivers, controllers or administrators.
Rothwell Lawyers also acts for and advises creditor companies and corporations seeking to recover debts from insolvent companies. Drawing on extensive corporate experience and in-depth knowledge of commercial and corporations law, our insolvency experts can advise on all aspects of debt recovery including the issue of Creditor’s Statutory Demands for the payment of a debt, debt recovery through the Court system, the submission of Proofs of Debt and the potential consequences of preferential payments.
The length and complexity of the Commonwealth Corporations Act means it can be challenging for companies to understanding their rights and obligations – but ignorance is no defence. We work with this legislation on a daily basis and can provide succinct, timely advice on your company’s obligations under the Act including the duties that fall on directors, secretaries and other public officers.