Director Duties In A Liquidation

A common misconception among directors is that once a liquidator is appointed, their responsibilities end. 

While directors lose control of the company's affairs upon the commencement of liquidation, they do not simply walk away from the process. In fact, directors continue to have a range of important statutory obligations and can face significant consequences if they fail to cooperate with the liquidator. 

Understanding what duties remain after liquidation begins is critical. A failure to comply can result in penalties, court orders, adverse reports to ASIC, and in some cases personal liability. 

Does a director still have duties after liquidation? 

The appointment of a liquidator transfers control of the company from the directors to the liquidator. Directors can no longer manage the company's affairs, deal with company assets, or make decisions on behalf of the company.