Liquidation of companies (1)
Understanding the types and procedures of liquidation can effectively protect the interests of directors, shareholders and creditors, and can also legally evade debts. The key is to master the time point and find out the name of start-up.
Corporate concept
In Australia, the company is the equivalent of a person, a law entity. Because the company itself is a limited liability, the company can only use the existing assets to repay the debt, the director does not assume liability other than the existing assets of the company to which the company belongs unless the director signed a personal guarantee on a transaction.
When to liquidate
Liquidation is divided into active liquidation and passive liquidation. Active liquidation means that the company's directors voluntarily put the company into liquidation process, which may be normal or difficult to support in the face of economic difficulties. Passive liquidation means that the liquidation is initiated by other parties and is not controlled by the company's directors.
Liquidation type
1. Creditor liquidation (active)
2. Shareholder liquidation (active)
3. Court liquidation (passive)
4. Interim liquidation (passive)
be continued