Liquidation
Receivership vs Liquidation | Understanding the Difference
Companies in financial difficulties may enter either receivership vs liquidation, depending on how their debts and creditor relationships unfold. While both are forms of external administration, they follow different legal procedures, serve different parties and result in different outcomes. Understanding the difference between liquidation and receivership is important if you’re a creditor, company director or…
Read MoreWhat happens to a Director of a Company in Liquidation?
When a company liquidation happens in Australia, the director loses control over the company’s affairs, assets, and operations. These responsibilities are handed over to an appointed liquidator. Directors must cooperate with the liquidator and provide any requested information, documents, and assistance to facilitate the liquidation process. The liquidator will also investigate the director’s conduct, to…
Read MoreWhat are Liquidated Damages?
A liquidated damages clause is a clause in some commercial contracts that sets a specific amount one party must pay if a particular term is breached. Also known as an agreed damages provision, this amount is intended to be a fair estimate of the potential losses the non-breaching party may face. To enforce a liquidated…
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