It seems Directors don’t always understand the significance of Statutory Demands and Winding Up Applicationswhen served on their company’s registered office.
And some companies out there are taking full advantage by preying on Directors’ naivety and emotions.
They often promote themselves as pre-insolvency services or financial angels. But we think of them as something else: ambulance chasers.
When a Winding Up Application is filed in the courts, it gets published on the Insolvency Notices page of the Australian Securities and Investments Commission (ASIC) website. It needs to be there within three days of the application being served, and at least seven days before the directions hearing.
The Insolvency Notices page is a public register, and these ambulance chasers (who are often unqualified) search it every day for companies that might be in financial difficulty. They then bombard vulnerable company Directors with phone calls and letters, promising they can resolve all of the company’s financial issues.
Unfortunately for the Directors, these people often can’t help at all.
As a Director you have a number of options to avoid having your company liquidated. But strict court timeframes and procedures means you have to act quickly. And that means getting advice from someone who’s qualified, regulated and insured.