Why place a company into liquidation?

There are a many reasons why directors place a company into Liquidation. These reasons include;

• The company is insolvent and is unable to pay all of its debts.
• The directors wish to avoid the potential of trading whilst insolvent.
• A company's affairs will not be fully wound up without having independent and qualified Liquidators to undertake the process.
• Liquidation protects creditors', directors' and members' interests while the company structure is dismantled.
• Allowing a company to simply be struck off ASIC's corporate register provides no certainty that creditors will not re-register a company and pursue the director in the future.
• The director of the company may have been served an ATO Directors' Penalty Notice. If this notice is allowed to expire without appropriate steps being taken, a director may become personally liable for the company's tax debt.
• The company serves no purpose in going forward.
• A group may need restructuring or reorganization.
• To avoid possible criminal liability - stop trading before problems.
• To bring to an end the overwhelming stress of continuing to trade