What is the role of the liquidator?

A liquidation is carried out by Registered Liquidators to ensure that all parties are treated fairly and as prescribed by the Corporations Act.

Liquidators must be independent as they have a duty to act impartially for the benefit of all creditors.

Liquidators have a number of duties, and below are some examples (these are not exhaustive):

• To protect and realise the assets of the insolvent company
• To investigate the affairs of the insolvent company and report any wrong doings such as potential claims for preferential payments, insolvent trading or any other breaches of the Corporations Act to the Australian Securities and Investments Commission ("ASIC").
• Establish the reason for the insolvent company's failure and to report the findings to ASIC
• To distribute any surplus funds to the employees (after the costs and expenses of the liquidation have been paid) and then unsecured creditors.
• After the affairs of the insolvent company have been fully dealt with and ASIC has provided the liquidators with a clearance the liquidators must hold a final liquidation meeting of members and creditors.