The application to the Court may be filed by:
The application must be filed in a superior court such as the Supreme Court of a State or Territory or the Federal Court of Australia.
There are a number of grounds on which a Court can order a company to be wound up, including:
Most Court liquidations occur because the company is insolvent. Typically this is established as follows:
Only a Registered Liquidator can be appointed by the Court.
The role of the Liquidator is as follows:
The Liquidator may pursue claims against directors for insolvent trading. Further, the Liquidator may commence legal proceedings to recover antecedent transactions including unfair preferences, uncommercial transactions, unfair loans and unreasonable director related transactions. As a consequence of recent amendments to the Corporations Act, such claims can now be assigned by Liquidators.
The Liquidator is an officer of the Court and has broader powers than a Liquidator appointed in either a members’ voluntary liquidation or a creditors’ voluntary liquidation.
Some advantages of an Court liquidation include: