INSOLVENCY
MANAGEMENT
CASE STUDY 5


Members’ Voluntary Winding-Up; Dormant Solvent Company

Background

ABC Pty Ltd (fictional name) was a dormant company whose assets consisted of some real property and loans receivable from a related company. There were no liabilities. The shareholders’ equity comprised capital, reserves and retained earnings.

The members wanted to wind the company up in the most tax-effective way.

Conclusion

The members’ voluntary liquidation process is the most useful form of administration in these circumstances. It can be used to wind up a solvent company and distribute assets to members, while remaining tax effective.




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