What are the benefits of an external administration?

If your company is solvent, the members’ voluntary liquidation process provides a comprehensive and compliant finalisation of your company’s affairs. After this process is completed, your company will be legally deregistered with all remaining funds returned to its shareholders.

If your company is insolvent, it is important to have it legally wound up. This will avoid potential personal liability of the director(s) and will also provide the director with a second chance (subject to various compliance rules and regulations) to run a business without fear of prosecution from regulatory bodies. The second chance philosophy underpins the Australian legislation and is intended for those who are genuinely insolvent and not trying to manipulate the system.

Once your company is in liquidation, all phone calls and correspondence will be directed to the liquidator’s office, thus relieving the stressful grind of dealing with creditors who cannot be paid.

Menzies Advisory does not charge you for the first, second or any consultation prior to any subsequent external administration unless specific pre insolvency reports are required by the client. We are able to assess your financial position and advise on future alternatives without it costing you anything. Our procedures are such that these consultations will not affect our independence to be externally appointed to your company later on in the process.

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