Court Liquidation Solutions Australia

Providing professional expertise and guidance to support you during this challenging event for your business.

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Previously known as an official liquidation, court liquidation takes place when a creditor applies to the court requesting the company close due to an inability to repay debt. This is a last resort and occurs when the creditor has exhausted all other options to obtain payment.

A court-appointed liquidator is tasked to investigate the company’s assets and failure to meet financial obligations. The liquidator appointed by the court will also advise on triaging the disbursement of funds to creditors. The liquidator then applies to the Australian Securities and Investment Commission (ASIC) to deregister the company so it ceases to exist.

If the court has ordered your company into liquidation, it can be a stressful, confusing and overwhelming experience. That’s where Corporate Lifeline’s liquidation specialists are here to support and guide you. Our outstanding advisory service will help you resolve these financial difficulties and set you on a positive path.


Professional Court-Ordered Liquidation Services

Corporate Lifeline can act as an independent third party to administer the court liquidation. Our services play a vital role in the orderly winding up of a company’s affairs, distributing assets to creditors and mitigating damage to directors. However, we’re also available before it gets to this point by determining if it can be avoided in the first place and exploring all possible options available to you.

Reasons For Court Order Liquidation

A court may order company liquidation for a number of reasons.


The company might be unable to pay its debt (for reasons including financial mismanagement, economic influences, and unanticipated losses) and therefore becomes insolvent.

Creditor’s petition

When a significant amount of money is owed to creditors, they may attempt to force payment by petitioning the court to act. Typically, creditors will explore other means of debt recovery before taking this action.

Failure to comply with statutory demands

If a creditor’s statutory demand for debt payment has not been met within 21 days, they can seek a court order.

Breach of company law

If the business has breached company law or regulatory requirements, including a failure to maintain correct financial records, committing fraud, failing to meet director duties, etc.

Shareholder disputes

When irreconcilable disputes form between shareholders or directors, a court-ordered liquidation may be the only way to resolve the conflict.
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“Business liquidation is an essential aspect of the corporate world, especially in a unique market like Australia. It ensures fairness and adherence to legal obligations and offers businesses a structured way to navigate challenging times. Understanding the full process can equip businesses and professionals to make informed decisions when faced with such situations.”


Benefits of Court-Ordered Liquidation

Court-ordered liquidations can, and should, lead to improved outcomes for Company Directors.

  • Put an end to your stress and anxiety.
  • Prevent you from being personally liable for company tax debt.
  • Stop creditors chasing you.
  • Empower you to let go of this chapter in life and move on.

The Court Liquidation Process

Although every situation has its nuances, Corporate Lifeline’s general liquidation process follows these key stages. The sooner you appoint us, the more our chances of success improve.

1. Petition to the Court:

The petitioner must show evidence of reasons for winding up the company (e.g. insolvency or other statutory grounds).

2. Court Hearing:

Evidence is presented and the court determines whether a winding-up order is appropriate.

3. Winding-Up Order:

A court-certified liquidator may be appointed to start the liquidation process. At this point, the liquidator controls the company’s affairs and assets. They become responsible for distributing proceeds to creditors.

4. Notification to Creditors:

The liquidator notifies creditors, shareholders, employees, and other stakeholders of proceedings. Creditors may need to provide evidence of debts.

5. Distribution to Creditors:

Minus the liquidation costs, proceeds are distributed to creditors as per the priority claims.

6. Finalisation and Dissolution:

The liquidator prepares final reports and accounts detailing the liquidation process. Once approved, the company is formally dissolved, the liquidation process is complete, and you’re now free to get on with the next chapter of your life.

Why Trust Corporate Lifeline To Manage Your Liquidation Process

Consider us your single-stop solution in understanding, navigating through and managing a court-ordered liquidation. From insolvency advisors, consultants and accountants, our experts provide all the knowledge, guidance and support you require to see this through.

  • Your partner – we’re dedicated to supporting you and making this process as uncomplicated and trouble-free as possible.
  • Committed to finding the right solutions that best protect you and your interests.
  • Independent operators backed by the security of Top 50 Australian Accounting Firm, Hall Chadwick.
  • Australia-wide – teams are available in every major Australian city.
  • Hundreds of satisfied clients – we have already rescued many companies nationwide.
  • Judgement-free – we’re here to help with empathy.
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Download our FREE guide to resolving your financial difficulties and return to normal, successful trading.

Contact Us About Liquidation By Court Order

Don’t let this challenge define your career. We can help make this process as stress-free and efficient as possible. Most importantly, we can give you the best chances of a clean exit and a fresh new start. Meet us for a free initial 30-minute consultation and see how we can help.

Court Liquidations – FAQs

These are some of the most common questions we get asked, but if you have more questions, please get in touch and we will gladly help you.

What is a court-ordered liquidation proceeding?
Sometimes referred to as a winding up by the court or a compulsory liquidation, this legal process winds up a company or corporation’s affairs. It typically occurs when the company becomes insolvent or cannot pay its debts.
Can you go to jail for a court-ordered liquidation?
Whilst a court order is unlikely to result in a jail sentence, the company Directors may face separate criminal charges that could end in a prison conviction. These include – but are not limited to – committing fraud, deliberating liquidating a company to avoid financial obligations before founding a new similar business and breaching director duties.
Which court hands down liquidation orders in Australia?
The Supreme or Federal Courts typically hand down liquidation orders, depending on the case’s circumstances and the jurisdictions.


If you find yourself in a situation where you need financial advice
for your business, let us help you.