Creditors' Voluntary Liquidation
If your business can’t pay its debts, you’re not alone, and you do have options. We guide directors through liquidation with care and clarity, closing the business the right way while protecting you and treating your creditors fairly.
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Excellent
- 5 average
- 8 reviews
The team that I dealt with particularly Cassandra Risteska is one of the most capable and professional individuals I’ve ever dealt with in my 20 years of working as a professional. Nothing was too much trouble and her and the team went above and beyond on many many occasions to assist me I could not recommend them highly enough
Julian
1 year ago
Certainly very professional and a positive attitude
Clint
1 year ago
We have referred a few clients to Rodgers for the Small Business Restructure process and found them very helpful and responsive. Lovely working with Andrew, Aiko and the team, thanks!
Cindy
1 year ago
Perfect coordination through the whole process by Rogers Reidy team. Cassandra, Yarmo & Brent weee absolutely helpful . While process as well organised and executed. Can’t thank them enough. All definitely recommend them.
Raghav Sri
1 year ago
Aiko is very professional and patient to my clients
Valentina
1 year ago
Two years ago I was recommended to see Rodgers Reidy to address my business problems due to difficulties arising from the Covid Pandemic. We had a strong business but we needed help dealing with a tax debt incurred during this period. They were professional and competent. They were diligent and left no stone unturned.
It is now two years after they helped with the SBR and we are back to returning a profit.
Thank you to all of the staff who helped from Rodgers Reidy.
I fully endorse the company and their expertise
Hywel
1 year ago
I was very happy with the Staff and outcome from Rodgers Reidy.
Very Professional people
Stephen
1 year ago
Assisted to negotiate a $200,000 tax bill to less than $60,000 with a small business restructure. They saved my business. Very impressive.
Anonymous
1 year ago
Trusted, independent guidance when your company can no longer continue
Financial pressure affects good directors every day. We understand the toll it takes, and we’re here to help you close things properly.
We’ve helped directors all over Australia wind up their companies the right way, protecting their position and treating creditors fairly, every step of the way.
What is a Creditors' Voluntary Liquidation?
A Creditors’ Voluntary Liquidation (CVL) is the formal way of closing down a company that can no longer meet its debts.
It’s the process most directors choose when it’s clear a business can’t continue. From there, a registered liquidator steps in to take care of the details: realising the company’s assets and distributing the proceeds to creditors fairly, in line with the Corporations Act.
The Benefits of Acting Early and Choosing a CVL.
Why a CVL might be the right decision
As a Director you have a duty to stop trading if your business is insolvent. A CVL is the most common way to meet that duty, with benefits that:
✓ Halts escalating personal liability for certain ATO debts, before it grows further
✓ Protects you from the risk of personal liability for insolvent trading
✓ Places an independent professional in charge, so the pressure is no longer sitting on your shoulders alone
✓ Ensures the company’s assets are distributed equitably among creditors
✓ Gives you confidence your creditors are being treated fairly, protecting your reputation as a director
How a CVL works
Members Appoint a Liquidator
Members approve the motion and appoint an independent, ASIC-registered Liquidator.
Liquidator Notifies ASIC
The Liquidator takes control and notifies ASIC, the ATO and revenue offices.
Creditors Are Contacted
Notices are published and creditors are invited to submit their claims.
Company Assets Realised
Assets are secured, sold, and the proceeds collected for distribution.
Distribute & Deregister
Funds are paid by statutory priority, then the company is deregistered.
Is a CVL right for my business?
Take our 30 Second Test and one of our experts will be in touch to discuss your options and potential for a CVL. Take our short eligibility test
A Summary of Recent Liquidations
Illustrative outcomes from creditors' voluntary liquidations we have administered.
| Industry | Total Liabilities | Assets Realised | Return to Creditors | Outcome |
|---|---|---|---|---|
| Hospitality | $412,000 | $138,000 | 33c / $ | Company deregistered |
| Construction | $1,240,000 | $520,000 | 42c / $ | Directors protected |
| Retail | $286,000 | $71,000 | 25c / $ | Company deregistered |
| Transport | $905,000 | $310,000 | 34c / $ | Employee entitlements paid via FEG |
| Professional Services | $178,000 | $96,000 | 54c / $ | Company deregistered |
Helping to Support Government Policy.
Michael Sukkar, the Assistant Treasurer of Australia in 2020, has been instrumental in implementing significant reforms to Australia’s insolvency framework. These reforms aim to support small businesses during challenging economic times, particularly in the aftermath of the COVID-19 pandemic.
92% of restructuring plans since 2021 have been accepted.
See the ATO’s position around SBR.
The Hon Michael Sukkar MP
Minister for Housing and Assistant Treasurer
Our National Team
Brent Morgan
Director - Melbourne Office
Shane Cremin
Director - Melbourne & Geelong Offices
Aiko Wang
Director - Sydney Office
Andrew Barnden
Director – Sydney & Dubbo Offices
Frequently Asked Questions
A Creditors’ Voluntary Liquidation (CVL) is the formal winding up of an insolvent company — a company that has insufficient assets to satisfy its liabilities. A registered liquidator is appointed to realise the company’s assets and distribute the proceeds to creditors in an orderly, lawful way.
Liquidation is governed by the Corporations Act. In broad terms, at least 75% of a company’s shareholders must resolve to wind the company up and to appoint a registered liquidator. The liquidator then reports to creditors.
Liquidation transfers the power of management from the directors to the liquidator. A CVL also helps directors avoid escalating personal liability for insolvent trading and for certain debts owed to the ATO.
No. Once a company is in liquidation, creditors can no longer pursue their debts through normal means such as legal action. Instead, they submit their claims to the liquidator, who assesses and ranks each claim to establish priority to any available funds.
The Small Business Restructure process does not involve changes to how you run your business. Your company may, however, decide upon a number of other adjustments to your business to improve how it operates, including reducing costs, selling assets, changing its organisational structure, and so on.
In very broad terms the order is: secured creditors, then employees, then unsecured creditors. Shareholders receive a return only after all creditors’ claims have been paid in full with interest.
Yes. Creditors may resolve, among other things, to replace the incumbent liquidator and request that a meeting be convened for that purpose.
The liquidator must act independently and in good faith. Their duties include lodging relevant notices and reports with ASIC, carrying out an investigation into the company’s affairs, and investigating any breaches of the Corporations Act.
Testimonials we're proud of
Discover our exceptional testimonials, reflecting our commitment to small business restructure
Craig Byron CPA
Partner, Beyond Accountancy
I had a great experience working with the Rogers Reidy team.
They were very professional and provided a great deal of helpful advice using both an extensive knowledge of the law and experience in dealing with these situations.
It was clear we were in great hands, and we were delighted with the outcome achieved.
I would recommend their services to anyone.
Nathan M.
Director
The team at Rodgers Reidy were extremely thorough as well as patient to manage us through the most challenging time in our over 20 years in hospitality; their transparency & realistic approach assessing our situation is what helped us keep our business going. We are extremely grateful for their experience & commitment to helping us continue to support our hospitality community.
Paul
Timber Supplies Company
Professional initial advice 100% commitment to the task on hand , ending with the perfect result for all concerned. HIGHLY RECOMMENDED
Start Your 30 Second Test
Not sure if an SBR is the right path for your business? Our 30 second test can help. Answer a few quick questions about your situation, and we'll give you a clearer sense of where you stand and if you qualify. Once you've completed the test, one of our experts will be in touch for a free no obligation chat to talk through the options best suited to your business.