What investigations will the liquidator undertake?
Liquidators must conduct a minimum investigation whether or not there are funds in the liquidation.
Liquidators must then report the findings of the investigations to the Australian Securities and Investments Commission pursuant to Section 533 of the Corporations Act.
Some of the issues this report will cover include:
- The history of the insolvent company and the reasons for its failure.
- The claims of employees, secured and ordinary creditors and the nature of the debts involved.
- Whether there have been instances of insolvent trading.
- Whether there are any preferential payments to creditors that may be recovered.
- Whether there are any offences that may have been committed by the officers of the insolvent company.
- Whether the directors have previously been involved in a Liquidation
Liquidators may, if the circumstances of the investigation warrant such action, publicly examine directors and other people in court, search and seize assets, company records, gain access to a property.
Additionally, where a company is in Liquidation, and the Liquidators feel the siutation requires the intervention of the ASIC, lodge a Prosecution request or for specific funding to undertake further investigations into the affairs of the insolvent company.
