CURRENT Figures

Personal Insolvency - Corporate Insolvency

Corporate Insolvency

The following information outlines both the monetary thresholds and time limits that apply in relevant insolvency practices.

Meeting Periods

Holding First VA meeting:
within 8 business days of appointment

Convening period to call Second VA meeting:
25 business days from date of appointment

Extension to convening period:
If the appointment commenced within a week before Easter or during December it is extended to 30 business days

Holding Second VA meeting:
within 5 business days before or after the end of the convening period

 

Holding initial Creditors Voluntary Liquidation meeting
within 18 days of appointment allowing for 7 days notice

Holding other Liquidation meetings:
At any time during appointment with 10 business days notice

Final Meetings in Voluntary Liquidations:
At end of appointment with 30 days notice

Priority Employee Entitlement Thresholds

 

Non-excluded employee:
No Limit. Non-excluded employees (not related to the directors) can receive their full entitlements.

Excluded Employees:
Excluded employees will only receive $2,000 in relation to Wages and $1,500 in relation to Leave Entitlements in priority to non-employee creditors. They will not receive a priority dividend for other entitlements.

General Dividends

Notice to be given to creditors to lodge Proofs of Debt:
at least 21 days before Declaration

Minimum time after Declaration before payment of Dividend:
No time Limit. The dividend may be paid immediately after the end of the lodgement period.

Minimum Dividend:
Liquidators are not required to pay a dividend under $25.00 to any creditor.

Statutory Demands

Minimum amount for the issuance of a Statutory notice:
$2,000

Time period for compliance
The debtor has 21 days to pay the debt or be deemed insolvent

Insolvency Related Offences

Non-Disclosure or Misrepresentation
section 590(1) - $10,000 or 2 years

Knowingly Receiving property of company
section 590(5) - $5,000 or 1 year

Frauds by Officers of company
section 596 - $10,000 or 2 years

Falsification of company books and records
section 1307 - $10,000 or 2 years

Providing False or Misleading statement
section 1308 - $10,000 or 2 years