By David Mansfield & Rick Porter
The importance of keeping your ASIC details up to date. Increasingly, it seems that more solvent companies are being placed into liquidation by default. Following the company being placed into liquidation, Moore Stephens is now seeing an increase in cases where directors are trying to terminate the winding up because the company is solvent. It is not a simple case of paying the debt of the petitioning creditor.
Typically, such cases involve companies with significant assets and where the directors were unaware that a winding up action had been commenced by an aggrieved creditor. Quite often the directors have simply failed to update the address of the company’s registered office with ASIC. Statutory demands and winding up applications are only required to be served on the company’s registered office. Consequently the defendant may be unaware of the proceedings until it is too late and the company is wound up.
