by norlinglaw | Jul 31, 2019
There are many reasons why you may want a liquidator to be removed.
For example, if you are a creditor:
- You want an aggressive liquidator.
- They will look at the affairs of the company.
- They will investigate overdrawn current accounts.
- They will investigate voidable transactions.
- They will investigate transactions at under value.
- They will investigate breaches of duties.
If you are a shareholder, you want a liquidator:
- Who will do nothing!
- You want to pay a fee to procure this.
The contrast is very stark!
There are things a liquidator CAN do. There are things that a liquidator MUST do.
A liquidator MUST take possession of and protect assets for the benefit of creditors.
A liquidator does not need to litigate, if they don’t wish to.
There are two practical ways in which to remove a liquidator:
- By majority vote of creditors at a creditors meeting; or
- If the liquidator breaches duties, by obtaining a High Court order.
Here Brent Norling of Norling Law and Damien Grant of Waterstone Insolvency discuss the practical pitfalls of appointing a liquidator and how to get a liquidator out.
This video will be useful for anyone considering appointing a liquidator or who wants to get a liquidator out of office.
At Norling Law, we offer a free 30-minute legal consultation to anyone needing help in this space. You can book an appointment directly here:
by norlinglaw | Jul 31, 2019
Unfortunately, companies fail routinely. But what are the obligations of the individuals with knowledge of the affairs of the Company, or who have information of the company? Do lawyers who acted for the company need to hand over their files to the liquidator? The answer can be surprising, even (and often) for lawyers! Do accountants need to hand over their files? Do employees need to give liquidators documents? What about any other person that has documents that are ‘of’ or ‘relate to’ the company, do they need to hand them over? What if you have some knowledge of the company’s affairs (but possibly were not even associated with the company); Do you need to sit down under oath and answer questions of the liquidator? Liquidators have wide powers to require certain person to hand over documents and attend interviews under oath. However, these powers are no unfettered. There are boundaries to the power (that are not always observed by liquidators). There are also obligations on certain persons (like directors and employees) to take certain steps immediately after a liquidation, without notice.
It is important to understand:
- The obligations of the individual.
- The rights of the individual.
- What a liquidator can and cannot do in these situations (because, often, they will attempt to be opportunistic).
In this video, Brent Norling, Director of Norling Law and Damien Grant, Liquidator at Waterstone Insolvency discuss all of these issues. Here we offer perspective from a lawyer who routinely acts for and against liquidators and a liquidator. If we can be of any specific assistance, we offer a free 30-minute legal consultation which can be booked here:
by norlinglaw | Jul 31, 2019
Shareholder disputes can be toxic. It can result in:
- Creditors not being paid;
- Staff not being paid;
- Directors taking remuneration they are not entitled to;
- Transactions occurring without consent;
- Loss of key suppliers or customers; Unilateral decisions being made;
- Assets being stripped; and/or
- The true financial details of the Company being hidden.
Brent Norling and Xinan Zhang of Norling Law discuss the traditional approaches to resolving a shareholder dispute and a little known provision of the Companies Act 1993 that is not often used which can be useful for resolving toxic shareholder disputes. Often the ‘toxic’ shareholder is acting in the way they are out of a false sense of security and the perceived lack of options available to other (usually minority) shareholders. It is important that shareholders be fully aware of the options available, so a proper and fully informed decision is made. Our shareholder dispute lawyers offer a free legal consultation where we can discuss the issues and formulate the best strategy to resolve them. You can book a free consultation or download our E-book: The Five Options to Resolve Shareholder Disputes
by norlinglaw | Jul 31, 2019
Damien Grant of Waterstone Insolvency and Brent Norling of Norling Law sat down to discuss a very controversial area of insolvency law, voidable transactions. It seems very unjust when a liquidator requires you to repay money you have worked very hard to generate. Liquidators can claw back money that was paid up to two years prior to a liquidation. At Norling Law, we often see liquidators overreaching and overstating their position. Without expert advice, recipients of funds can be pressured to pay back money that they are really entitled to retain. We put a spotlight on the area and discuss it with a liquidator to gain another perspective. Full video here:
by norlinglaw | Jul 31, 2019
Damien Grant of Waterstone Insolvency and Brent Norling of Norling Law sat down to discuss a very controversial area of insolvency law, voidable transactions. It seems very unjust when a liquidator requires you to repay money you have worked very hard to generate. Liquidators can claw back money that was paid up to two years prior to a liquidation. At Norling Law, we often see liquidators overreaching and overstating their position. Without expert advice, recipients of funds can be pressured to pay back money that they are really entitled to retain. We put a spotlight on the area and discuss it with a liquidator to gain another perspective.
