Corporate Talk WA

Some people make a knee-jerk decision to declare bankruptcy. They think it’s the only way out of a poor financial situation. What many don’t realise is that it’s not just your credit rating that will be impacted by declaring bankrupt, it can affect many areas of your life. Career Choices For many young people who haven’t yet established their careers, they are narrowing their choices by declaring bankrupt. For older workers, they may not be able to continue in their career after bankruptcy leading to more financial pressure. There are numerous Australian professional and trade licensing bodies that don’t allow members to be bankrupts. If you want to run your own small business, there may be limitations placed on you. People who are bankrupt can’t manage a trust account in a real estate or accounting firm, for example. You are also not permitted to hold a liquor licence, building or property management licence. Even if their roles aren’t on your list of preferred jobs, some empl...

A provisional liquidation usually occurs when there is a dispute between the shareholders and directors. One party will file for a provisional liquidation in the interest of preserving the company’s assets. A company may also be placed into provisional liquidation if it is insolvent. A Provisional Liquidator may be appointed by the Court to provide protection to the company’s assets and affairs until a winding up appeal can be heard. Criteria for Appointing a Provisional Liquidator The Court may consider the following points when deciding whether to appoint a provisional liquidator: Are the assets of the company at risk? Is there a need to take urgent action or can the matter wait for the hearing? What is the likelihood that a winding up order will be made? Is there a need for the accounts to be reviewed by an independent examiner? Have the company’s affairs been properly conducted and in line with its legal requirements? What is the need to preserve the status quo? Prote...