At Gervase Consulting we understand owning business can be an exciting and rewarding. We also know that running a business can be challenging. There can be many factors that may affect your business and it can be unclear when to seek help from a Regulated Insolvency Professional.
The impact of the last bushfire season and now COVID-19 is causing significant distress to companies. Indeed, for many companies, cash flow has slowed to a trickle or even stopped completely.
Regardless of the size or type of company, directors have specific duties and obligations in carrying out their role. In uncertain times, directors need to understand how their duties may change when faced with financial distress and who they can turn to for expert advice.
ARITA have published a “Directors’ duties in uncertain financial times” a copy which is available below.
We are ARITA Professional Members and we are here to help. Contact our office on (07) 3221 8006 or at firstname.lastname@example.org and discuss your options with a member of Our Team today.
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Voluntary Administration (VA) allows a business to continue trading while offering protection from action brought by creditors. The VA procedure allows companies in financial distress time to develop and implement a restructuring plan with its creditors or at allow time to plan for an orderly sale of the assets through liquidation. Gervase Consulting working with the company can provide the best outcome for all creditors and stakeholders under the VA process including the survivial of the business.
Creditors Voluntary Liquidation (CVL) also known as ” Creditors Voluntary Winding up” is a procedure for an insolvent company for when a company reaches a point that the company’s debt has become unmanageable and has generally little or no cashflow resources available. It is usually a last resort for a company as it is insolvent and cannot continue to trade. Gervase Consulting can provide the necessary collective procedure that allows for an equitable and fair distribution of the assets available to creditors of the company.
A Court Appointed Liquidation also known as a “Official Liquidation” (OL) is a liquidation that starts as a result of a court order, made after an application to the court, usually by a creditor of the company. Gervase Consulting role in such appointments includes an emphasis on the circumstances that precipitated the winding up through a investigation of the company’s affairs leading up to the appointment and advise creditors of any assets available to provide for an equitable and fair distribution of the assets available to creditors of the company.
A Members Voluntary Liquidation (MVL) is a process undertaken by a solvent company when the company no longer wants to continue to trade due to a number of factors including retirement and changes in economic environment. Gervase Consulting can assist in the process and the necessary documentation to commence.
A Receiver who has, under the terms of their appointment, the power to manage the company’s affairs. This procedure can apply to corporations, partnerships and individuals. A receivers role is to collect and safeguard income and assets with the aim of protecting property subject to their appointment. A Receiver and Managers (controllers) are entitled to carry on the business as a going concern and have additional rights, including the right to buy and sell. Gervase Consulting undertakes both Receiver and controller appointments from time to time with the aim of completing the role in an efficient and timely manner.Content
Bad Debts and Slow Collections
We can assist in providing advice and structure.
Changes in Market Conditions, Regulations
When the market changes your business can sometimes be caught out, managing existing customers, suppliers and financial commitments can be tricky. Let us work with you to formulate a strategy that works for you as well as your creditors.
Cash Flow Fluctuations / No Cash Flow
Assist in identifying factors contributing to ups and downs in revenue come fluctuations in your personal financial picture.
We can assist in helping you formulate a plan of when to spend money for expansion or equipment.
Formal Insolvency Options
Some circumstances require a formal insolvency appointment such as a Voluntary Administrator, Receiver or Liquidator.
“Changes to business practices at the right time can sometimes avoid a Formal Insolvency Appointment”.
“Seeking the right advice can be everything”
“Don’t wait until it’s too late”