Show Notes
In this episode, Toufic Haddad sits down with David Ingram from I&R Advisory to break down one of the biggest misconceptions around company liquidation.
If your company goes into liquidation, does that mean you can never own a business again?
Not necessarily.
David explains the difference between legitimately shutting down a failed company and starting again, versus illegally transferring assets, customers, contracts or business value away from creditors.
Toufic and David also discuss phoenixing, assets being sold to family members below market value, directors taking company money personally, liquidators clawing transactions back, and what can happen when directors try to strip value out of a company before liquidation.
They also walk through a real example of a business owner who liquidated an insolvent company, bought the business assets back at market value, started a new company and went on to trade profitably.
This episode covers:
Company liquidation Can you start another company after liquidation? Phoenix activity Illegal phoenixing Selling assets below market value Related party transactions Transferring assets to family members Liquidator clawbacks Company assets and director responsibilities Buying assets back from a liquidator Starting a new business after liquidation Moving customers and contracts between companies Doing the right thing by creditors Paying old suppliers after starting again ASIC reporting requirements Director bans When ASIC can disqualify a director The difference between business failure and misconduct Why liquidation does not necessarily mean the end of your business career
David also explains why the key distinction is whether the new business is genuinely starting fresh, or whether value that belonged to the old company has simply been moved elsewhere without proper consideration. :chatgpt-content-reference{index="0"}
If your company is experiencing financial difficulty, get advice early. Trying to move assets, hide transactions or avoid creditors can create significantly bigger problems than dealing with the insolvency properly.
Connect with David Ingram and I&R Advisory I&R Advisory Website https://iandradvisory.com.au/
David Ingram LinkedIn https://au.linkedin.com/in/david-ingram-76b22052
I&R Advisory LinkedIn https://www.linkedin.com/company/i-r-advisory
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This content is general information only and does not constitute financial, legal, tax, insolvency or business advice. Speak with a qualified adviser about your own circumstances.
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