Many manufacturing businesses reach a point where continued trading is no longer sustainable in its current form. At that stage, voluntary administration or creditors’ voluntary liquidation may be the appropriate path.

This Guide provides a practical comparison of voluntary administration and creditors’ voluntary liquidation, including timing, cost, director risk, and commercial outcomes.

1. When a Long-Standing Business Reaches the Crossroads

Many of the most complex restructuring engagements involve businesses trading for decades — sometimes 40–50 years — that can no longer arrest decline.

The drivers are usually structural rather than misconduct:

Continuing operating losses
Shifts in consumer behaviour
Margin compression
Competition from lower-cost imports
Australian labour and compliance costs
Inability to sell the business quietly as a going concern

At this point, directors are typically choosing between:

Voluntary Administration (VA) under Part 5.3A of the Corporations Act 2001; or
Creditors’ Voluntary Liquidation (CVL)

Voluntary administration is generally more expensive than liquidation. However, where a Deed of Company Arrangement (DOCA) is achievable, it provides a softer, more controlled outcome for directors.

In practice, the decision is commercial. It turns on:

Risk appetite
Funding capacity
Credibility of a restructuring proposal
Advice from legal and restructuring advisors

Early assessment is critical.

2. What is Voluntary Administration?

Voluntary Administration in Australia is a formal restructuring regime introduced in 1993, governed by Part 5.3A of the Corporations Act 2001 (Cth).

Its statutory object (s 435A) is to:

Maximise the chances of the company or its business continuing; or
Achieve a better return for creditors than immediate liquidation.

Commercially, voluntary administration is a circuit breaker. It:

Transfers control from directors to an independent registered liquidator (the administrator)
Imposes a statutory moratorium on most creditor action
Forces a structured decision within weeks — restructure, sell, or liquidate

It is not a delay tactic. It is a structured decision-making process.

When Is Voluntary Administration Appropriate?

Voluntary administration is typically appropriate where:

The company is insolvent or likely to become insolvent
Creditor pressure is escalating
There is a viable core business
A third-party contribution or restructuring proposal is credible
A DOCA is likely to produce a better outcome than liquidation
Directors are concerned about an insolvent trading claim if there were a liquidation instead of a voluntary administration followed by a DOCA.

It is usually inappropriate where:

No funding source for a DOCA exists
No viable restructuring proposal exists
Losses are structural and ongoing with no pathway to correction

Immediate Legal Effect: The Moratorium

Upon appointment of a voluntary administrator:

Winding-up proceedings are stayed
Most enforcement action is frozen
Landlords cannot terminate solely because of administration
Director guarantees cannot be enforced during the voluntary administration period (subject to limits)
Secured creditors are restricted, subject to a 13-business-day decision period

For boards facing escalating pressure, this often stabilises the position immediately.

The Two Creditors’ Meetings

Voluntary administration operates on a strict timetable.

First Meeting (within 8 business days)

Creditors may:

Replace the administrator
Appoint a committee of inspection

Second Meeting (usually within 20–25 business days)

Creditors resolve to:

Enter a Deed of Company Arrangement (DOCA)
Place the company into liquidation
Return control to directors (rare)

Most substantive work — investigations, funding negotiations, business sale campaigns, and DOCA formulation — occurs between these meetings. Court extensions are common in complex matters.

In making a decision, it is valuable for decision makers to understand, in advance, the voting methodology at the First Meeting and Second Meeting.

Deed of Company Arrangement (DOCA)

A DOCA is the formal restructuring mechanism within voluntary administration. It may involve:

Lump sum contributions from directors or third parties
Sale of business or assets
Debt compromise in connection with director-related liabilities
Creditor trusts

Creditors vote as a single class; approval requires a majority in number and value. the voluntary administrator has a casting vote where there is a stalemate. If implemented successfully, the company avoids liquidation and may continue trading.

Insolvent Trading and Part 5.7B Exposure

Directors often worry about personal exposure under Part 5.7B of the Corporations Act, covering:

Insolvent trading
Voidable transactions

Direct liquidation usually triggers investigations. Where voluntary administration leads to a DOCA and avoids liquidation, exposure is often materially reduced. This is a key reason directors sometimes fund voluntary administration and then a DOCA — for a more predictable, controlled outcome.

It is not immunity, but it significantly alters risk.

Case Experience – When Liquidation Was the Right Call

Since the regime’s introduction, we have undertaken more than 150 voluntary administrations. Many transitioned to DOCA because directors sought certainty and were prepared to fund a softer landing.

However, voluntary administration is not always appropriate. In a recent engagement:

The company was at end of life
The only alternative was a $1 million capital injection and relocation
Trading losses would likely continue

The directors elected creditors’ voluntary liquidation.

At appointment:

No funds were in the bank
Employees were terminated except a small core team retained to assist
Asset values were assessed with external advisors
Prospects of a going concern sale were evaluated

We conducted an accelerated sale campaign, exchanged and completed contracts within three weeks, vacated the leased premises, and returned them to the landlord.

The purchaser was a competitor that sought a Sydney presence. Some former employees were offered employment.

We worked closely with the company’s external accountant and legal advisors throughout, and also, engaged our own lawyers for reasons of independence.

In this case, voluntary administration would have increased cost without altering the commercial outcome.

Final Observations

Voluntary administration in Australia is a powerful restructuring tool and alternative to creditors voluntary liquidation. It can:

Preserve enterprise value
Improve creditor outcomes
Provide directors with structure and protection

But it is not suitable in every case. The key question is whether a credible restructuring outcome exists — and whether the cost and risk profile justify it compared with immediate liquidation.

Early, commercial, and candid assessment is essential.

3. Voluntary Administration vs Creditors’ Voluntary Liquidation

Which pathway is appropriate?

Directors frequently ask: Should we appoint a voluntary administrator or proceed directly to liquidation?

The answer depends on commercial reality — not emotion.

Voluntary Administration (VA)

Best suited where:

Viable underlying business exists
DOCA proposal is realistic
Directors are prepared to fund the process including DOCA
Sale as a going concern is achievable
Managing insolvent trading exposure is a priority for directors

Advantages:

Immediate moratorium on creditor action
Structured pathway to compromise debt
Potentially reduced Part 5.7B exposure if DOCA implemented
Ability to preserve goodwill, contracts, layby stock, and overseas stock orders

Disadvantages:

Higher cost
Tight statutory timetable
Requires funding for DOCA and credible DOCA proposal

Creditors’ Voluntary Liquidation (CVL)

Best suited where:

Business is at end of life
No viable restructuring proposal exists
Losses are structural
Funding unavailable
An orderly wind-down or asset sale is required

Advantages:

Lower cost
Faster implementation
Clear and decisive process
Ability to conduct controlled sale campaigns

Disadvantages:

Investigation of insolvent trading and voidable transactions
No restructuring mechanism
Directors lose control permanently

The Real Decision

In many generational business failures, the real question is not survival, but:

Is a restructuring outcome genuinely achievable?
Is the additional cost of voluntary administration followed by a DOCA justified?
Do directors want a more protective, structured pathway?

Each matter must be assessed on its own commercial facts. Early advice materially alters outcomes.

Key Questions Directors and advisors Ask About Voluntary Administration

Timing and Decision-Making

When should directors formally appoint a voluntary administrator?
How do we know when temporary pressure becomes insolvency risk?
Can the business be stabilised without formal appointment?

Director Risk and Exposure

What personal risks do directors face if trading continues?
How does insolvent trading exposure arise under Part 5.7B?
How is that risk paused or altered in voluntary administration compared with creditors’ voluntary liquidation?
Will past trading conduct be investigated?
Are phoenix risk issues likely in restructuring or sale?

Commercial Leverage and Protection

What leverage does voluntary administration create with trade suppliers, landlords, and secured creditors?
Does the moratorium genuinely prevent enforcement action — including landlords locking the doors?
How do hostile creditors behave in practice?
How are director guarantees treated during administration and afterward?

Business Survival and the Circuit Breaker Effect

Why is voluntary administration described as a circuit breaker?
If there is a cashflow crisis but a viable core business, can restructuring restore profitability?
What usually happens — restructure, sale, or liquidation?
When is voluntary administration the wrong tool, and why?

Employees and Staff Concerns

What is the likely reaction of employees?
Are employees automatically terminated upon appointment?
Will wages, superannuation, and leave entitlements be paid?
Can employees transfer to a purchaser?
How are entitlements treated in a DOCA versus liquidation?

Sale of Business and Asset Strategy

How is the decision to sell made?
Can the business be sold as a going concern?
Can assets be sold free of liabilities and security interests?
How is layby stock treated — sold, returned, or transferred?
What about stock on order from overseas — company asset or supplier claim?
Is a pre-packaged sale possible if the market has been tested at fair value?
Can the business trade under licence before or after appointment — and is that advisable?

Deed of Company Arrangement (DOCA)

How does a DOCA actually work?
Why would creditors accept a DOCA paying, for example, less than 10 cents in the dollar?
Is a DOCA tailored to the company’s circumstances?
Who drafts it, and how early can the likely structure be predicted?
What is a DOCA combined with a creditors’ trust, and when is that appropriate?

Government and Tax Authorities

What is the likely attitude of the Australian Taxation Office?
How influential is the Australian Taxation Office vote in a DOCA proposal?
Are tax debts treated differently from trade creditors?
Will directors become personally liable for tax debt?

Control and Practical Realities

If directors lose control in voluntary administration or creditors voluntary liquidation, what does that mean practically?
How involved can directors remain during the process?
What happens to the company’s credit profile, and does it affect directors personally?

Strategic Comparison

In a generational business failure, is voluntary administration justified, or is liquidation more commercially rational?
Does funding voluntary administration materially improve certainty and reduce risk?

Appendix 1

Side by side comparison – voluntary administration versus creditors’ voluntary liquidation

Feature / Consideration	Voluntary Administration (VA)	Creditors’ Voluntary Liquidation (CVL)
Purpose / Objective	Corporate rescue process; maximise chances of continuing business, restructure debts, or achieve better creditor outcomes than immediate liquidation.	Winding up of the company; realise assets and distribute proceeds to creditors. No rescue objective.
Legislation	Governed by Part 5.3A of the Corporations Act 2001.	Governed by Part 5.5 of the Corporations Act 2001.
Initiation	Appointed by directors, a secured creditor, or a liquidator. Court involvement rare.	Appointed by directors; Court involvement rare unless disputes arise.
Moratorium / Creditor Protection	Automatic moratorium on creditor enforcement; prevents winding up, seizure of property, and termination of contracts due to insolvency.	No moratorium. Creditors may enforce rights immediately.
Director Control	Directors temporarily lose control; administrators take over, but directors often consulted.	Directors lose control immediately; liquidator manages all company affairs.
Risk to Directors	Insolvent trading risk paused. Assuming a DOCA is achievable, Part 5.7B exposure can be mitigated.	Insolvent trading exposure continues; directors may be investigated for pre-liquidation conduct. Directors may have statutory defences.
Employees / Staff	Staff may be retained during administration or alternatively staff employment may be terminated; wages, superannuation, and entitlements addressed by administrator. Employees may transfer in sale of business. in a Deed of Company Arrangement, employees should receive no less that they would receive in a liquidation scenario. In a liquidation scenario, employees may have a claim under FEG Scheme.	Employees may be terminated; entitlements paid as part of statutory priority via FEG Scheme if funds are not otherwise available; ongoing employment not guaranteed.
Business Continuation	Business may continue trading under administrator; potential for sale as a going concern or restructure via DOCA.	Business usually ceased immediately. Sale as a going concern possible or forced sale or auction sale on-site or in-rooms.
Asset Management	Administrator can sell assets, continue operations, or restructure stock, including layby stock and overseas stock orders, subject to creditor and court approvals.	Liquidator realises assets for cash distribution; layby and overseas stock treated according to ownership and priority rules.
Cost / Fees	Higher upfront cost in administration, professional fees, and potential funding requirements for DOCA proposal.	Typically lower cost; liquidator fees charged against company assets.
Outcome Certainty	Flexible outcomes: restructure via DOCA, sale of business, or eventual liquidation. Provides softer landing for directors.	Clear outcome: liquidation and winding up. Creditors’ claims finalised according to statutory priorities.
Creditor Involvement	Creditors vote on DOCA at second meeting; may approve restructuring even with partial recovery.	Creditors vote to accept liquidator, receive distribution according to priority; no restructuring.
Strategic Use Cases	Generational or viable businesses with cashflow issues; where rescue, restructure, or sale may maximise value.	Businesses at end-of-life, no realistic prospect of recovery, or where directors prefer immediate exit.
Timing / Process	First creditors’ meeting ~8 business days; second meeting ~20–25 business days; court extensions possible for complex cases.	Liquidation completed in line with statutory requirements; distribution follows asset realisation, typically slower for large estates.
Internal/External Communication	Administrator manages communications with creditors, staff, and stakeholders; directors may advise and assist.	Liquidator communicates primarily with creditors; directors’ role limited.

Observations From Practice

VA provides certainty for directors where creditors are likely to approve a DOCA. It is often preferred when the business has viable operations or goodwill to preserve.

CVL is suitable where the business is unviable, funding for a DOCA is unavailable, or directors wish to exit entirely.

The choice between VA and CVL depends on risk appetite, cost, and legal advice.

Appendix 2

Our competitive edge

Strategy

Commercial

Triage thinking

Experience

Outcome focused

Communication with all stakeholders throughout

Appendix 3

For lawyers, advisors and others, this is a high-level synopsis.

Overview

Voluntary administration is a corporate rescue process under Australia’s Part 5.3A of the Corporations Act 2001. The primary aim is to maximise the chances of the company’s continuation through debt restructuring or, if unfeasible, to achieve a better outcome for creditors than would be possible in a liquidation. This process provides a temporary shield from creditor actions, giving the company time to formulate a plan to either recover or conclude its affairs in an orderly fashion.

Legislation

Part 5.3A of the Corporations Act for voluntary administrations states:

CORPORATIONS ACT 2001 – SECT 435A

Object of Part

The object of this Part, and Schedule 2 to the extent that it relates to this Part, is to provide for the business, property and affairs of an insolvent company to be administered in a way that:

(a) maximises the chances of the company, or as much as possible of its business, continuing in existence; or

(b) if it is not possible for the company or its business to continue in existence–results in a better return for the company’s creditors and members than would result from an immediate winding up of the company.

Commencement of Administration

A company’s voluntary administration begins on the date an administrator is appointed. This appointment can be made by a written instrument and may be initiated by:

The company’s board: If the board resolves that the company is insolvent, or is likely to become insolvent (unable to pay its debts as they come due), it may appoint a voluntary administrator. This is the most common route (Corporations Act 2001, Section 436A(1));
A liquidator or provisional liquidator: If the liquidator believes the company is, or is likely to become, insolvent, they may also initiate administration (Section 436B);
A secured creditor: A secured creditor with an enforceable security interest over all or substantially all of the company’s assets can appoint a voluntary administrator (Section 436C).

Notably, the court does not have a general power to appoint voluntary administrators at the request of creditors or other parties.

Role and Authority of the Administrator

The voluntary administrator assumes control over the company’s business, property, and affairs, with extensive powers, including the authority to continue, cease, or dispose of the business or any of its assets. Acting as the company’s agent, the voluntary administrator can perform any function or exercise any power that the company or its officers would otherwise hold if not for the administration.

If a committee of inspection (a creditors’ committee) is appointed at the first creditors’ meeting, it can consult with the voluntary administrator on various matters. Once a voluntary administrator is appointed, this appointment is final, though creditors may vote to remove the voluntary administrator at the first creditors’ meeting, or the court may do so if it would benefit the administration’s progress.

Court involvement in an administration is generally limited, but parties may apply to the court during the voluntary administration, and the court retains broad authority to issue orders related to the process. Only registered liquidators may serve as voluntary administrators, and they are subject to regulation and oversight by ASIC.

Key Stages in the Administration Process

Voluntary administration consists of two key phases, each marked by a creditors’ meeting.

(1) The First Creditors’ Meeting:

At this initial meeting, creditors decide on two key matters:

Whether to replace the voluntary administrator.
Whether to establish a committee of inspection (a group representing creditors’ interests) and, if so, to appoint its members.

This meeting must be held within 8 business days from the start of the voluntary administration, unless the voluntary administrator applies for and receives a court extension.

(2) The Second Creditors’ Meeting:

This meeting determines the company’s future, with three possible outcomes:

The company enters a Deed of Company Arrangement (DOCA) to restructure its debts.
The company is placed into liquidation.
The company is returned to the directors’ control, which is rare.

The second meeting is typically scheduled within 5 business days before or after the end of the “convening period.” Ordinarily, the convening period lasts 20 business days from the start of administration (or 25 business days if the appointment occurs near Christmas or Good Friday). In complex or larger cases, administrators often request court extensions for the second meeting providing additional time to explore restructuring or sale options.

Most administrative work happens between the two meetings. During this period, the voluntary administrator conducts investigations, manages the business, prepares or evaluates DOCA proposals if relevant, and formulates strategies for asset sales or business reorganisation. This intensive phase is essential for developing viable options for the company’s future.

Moratorium: Legal Protections

The voluntary administration process grants a financially distressed company a period of breathing space to decide its future path. During this period, an automatic stay is in place, which prevents:

The company from being wound up.
Secured creditors from enforcing their security interests.
Lessors or third parties from reclaiming leased or third-party-owned property except perishable items.
New or ongoing court and enforcement actions against the company or its property.
Enforcement of guarantees provided by the company’s directors or their spouses or relatives.

There are some exceptions to these restrictions. Creditors may seek court permission or the administrator’s consent to proceed with specific actions. Additionally, certain secured creditors who had initiated enforcement before the voluntary administration may continue, and secured creditors holding security over most or all of the company’s assets can take enforcement action (such as appointing a receiver) within the “decision period,” which lasts 13 business days from the date the voluntary administrator is appointed.

Ipso facto stay: Protection Against Contractual Termination Rights

To improve the chances that a company in voluntary administration can continue trading and recover, certain contractual rights (including termination rights) cannot be exercised solely because the company has entered voluntary administration, unless the voluntary administrator consents or the court permits it. Specifically, parties are barred from enforcing contractual rights based on:

The company entering voluntary administration.
The company’s financial condition.
Any prescribed reason (none have been specified to date).
Any reason essentially similar to the above.

The ipso facto stay only applies to contracts entered into on or after 1 July 2018.

There are some exceptions for specific types of contracts and rights.

Business Operations

During administration, the voluntary administrator has authority to manage the company’s business, including continuing operations, incurring debts, and selling goods and services in the normal course, as long as these actions are authorised by the voluntary administrator. Alternatively the voluntary administrator can close or sell the business.

The voluntary administrator is personally responsible for debts incurred while fulfilling his or her duties, specifically for: (i) services provided, (ii) goods purchased, (iii) property leased, rented, used, or occupied, and (iv) repayment of borrowed funds, including associated costs and interest. Additionally, the voluntary administrator is liable for rent or other amounts under existing leases, starting 5 business days into the administration period, as long as the company continues to use the leased property.

To cover debts or liabilities incurred, the voluntary administrator is entitled to an indemnity from the company’s property, which is secured by a lien. This lien has priority over unsecured creditors but typically ranks behind secured creditors, except in cases where the security is circulating in nature.

New Funding Options

The voluntary administrator has the authority to raise funds on the company’s behalf and is personally liable for any debts incurred, with a right to indemnification from the company’s assets.

In practice, if additional funding is needed for instance, to continue operations, the voluntary administrator typically first approaches an existing secured creditor, especially one holding security over most or all of the company’s assets. If this creditor declines, the voluntary administrator may seek funds from other sources, such as a rescue financier. However, such external funding is usually only obtained with priority or super-secured status – that is, the new lender’s security takes precedence over existing secured debts – which generally requires consent from the current secured creditor.

While no court orders are legally required to obtain such funding, administrators commonly apply to the court beforehand to limit personal liability. Similarly, lenders may request a court order to validate the security granted by the company for the new loan.

Business and Asset Sales

The voluntary administrator is empowered to sell the company’s business and assets, directly overseeing or authorising the sale.

However, if property is subject to a security interest or owned or leased by a third party, the voluntary administrator can only proceed with the sale if one of the following conditions is met: (i) the sale occurs in the ordinary course of the company’s business, (ii) written consent is obtained from the secured party, owner, or lessor, or (iii) court approval is granted. When making a sale, the voluntary administrator must act reasonably, exercising sound business and commercial judgment.

For assets covered by a valid security interest, any net proceeds from the sale must first be used to pay the secured debts. Buyers acquire these assets free from any previous claims or security interests.

A Pathway to Restructuring

Before the second creditors’ meeting, any party can propose a DOCA to restructure the company’s debts and operations. A DOCA is a flexible restructuring tool that establishes a binding agreement between the company and its creditors, detailing how to address outstanding debts after the administration period.

A DOCA can include various arrangements such as rescheduling debt repayments, extending payment terms, converting debt to equity, selling some or all assets, distributing funds to creditors, or establishing a creditors’ trust. Proposals often come from directors, shareholders, or potential buyers of the company’s business or assets. The main requirement for a DOCA is that it offers creditors a better outcome than liquidation. It may treat different classes of creditors differently if there is a valid business rationale for doing so.

A DOCA does not, however, interfere with the rights of secured creditors to enforce their security interests or prevent property owners or lessors from exercising their rights—unless they voted for the DOCA or a court orders otherwise.

The voluntary administrator reviews DOCA proposals and issues a report to creditors, recommending whether entering the DOCA would serve their best interests. Creditors vote on the DOCA at the second meeting, with approval requiring a majority in both value and number of those present including proxies.

If approved, the DOCA must be finalised and signed within 15 business days following the second meeting, unless the court grants an extension. It must include key provisions, such as the administrator’s powers, termination conditions, and the formation of a committee of inspection. If the DOCA is not approved, the company typically enters liquidation, and the voluntary administrator generally becomes the liquidator.

Upon signing the DOCA, the voluntary administrator becomes the deed administrator unless creditors appoint someone else by vote. The DOCA then binds the company, its officers, shareholders, deed administrator, and all creditors (subject to certain rights of secured creditors and lessors as mentioned).

Depending on the DOCA’s terms, control of the company may either remain with the deed administrators or return to the directors. Recent practice has seen DOCAs paired with creditors’ trust deeds, allowing funds or assets to be held in trust for distribution. This setup can expedite the return of the company to normal operations, while the trust handles payments to creditors independently.

Set off

Entering administration does not automatically trigger a set-off requirement. However, set-off rights fall under the types of contractual rights that are exempt from the ipso facto stay. This means the stay does not restrict a counterparty’s contractual right to offset amounts the company owes them against amounts they owe the company.

Effect on stakeholders

Upon the appointment of a voluntary administrator, the powers of directors and officers are put on hold. Employees remain employed unless their positions are terminated by the voluntary administrator. Additionally, members are generally prohibited from transferring their shares in a company under administration, with some exceptions. Voluntary administration does not automatically terminate the company’s contracts.

End of procedure

A voluntary administration generally concludes after the second meeting of creditors, during which they decidewhether the company should: (i) enter into a DOCA; (ii) go into liquidation; or (iii) return to the directors’ control which is uncommon.

Once a DOCA is terminated, the company is no longer bound by its provisions. Termination usually occurs due to specific conditions outlined in the DOCA. However, under certain circumstances, a company may continue to be subject to a DOCA if it is ordered by the court, approved by the creditors’ resolution, or through a notice issued by the deed administrators.

Support from Levi Consulting

As always, we remain available for discussion virtually or face-to-face. Reach out to David Levi at 0418 602 466 for a confidential conversation about your unique circumstances.

	Option	When is it suitable?
1	Informal Workout	Whenever informal solutions with creditors are feasible.
2	Members’ Voluntary Liquidation, alternatively, corporate simplification	Solvent dissolution of a company that had trading activity.
3	Voluntary Deregistration	Solvent dissolution of a company with no or limited trading activity (e.g. a holding company or dormant company).
4	Voluntary Administration	Key mechanism for businesses in financial distress to explore restructuring or sale options while under the protection of a moratorium.
5	Safe Harbour	A support tool for enabling directors of a distressed company to continue to trade while working on an informal workout or planning for a formal solvency.
6	Deed of Company Arrangement (DOCA) following Voluntary Administration	A flexible, formal insolvency restructuring tool. It follows a Voluntary Administration. Widely suitable for restructuring debts.
7	Creditors’ Scheme of Arrangement	Another flexible formal insolvency restructuring tool – more cumbersome to implement than a DOCA, but with the advantage of being able to bind secured creditors. Ideally suited to financial restructuring of large/complex debt stacks.
8	Small Business Restructuring Plan	For small and micro businesses (less than $1,000,000 in total debts) – a quick and straightforward alternative to a DOCA.
9	Creditors’ Voluntary Liquidation	Best suited to a terminal liquidation of a failed/insolvent company – where an attempt at restructuring through administration and DOCA would be unlikely to work.
10	Court Liquidation	Effective in instances of shareholder/management failure (e.g. in a failed or dysfunctional joint venture). Also commonly used by creditors to attempt to force an involuntary liquidation on a debtor company that has failed to pay its debts.
11	Receivership	A receiver is appointed by the court or alternatively by a secured creditor to take control of all or part of the assets and business of a company or partnership. Court-appointed receivers are common for partnership disputes.
12	Section 66G	When co-owners are in a dispute over jointly owned property the court can appoint trustees using s 66G of the Conveyancing Act 1919 (NSW) to sell the property and distribute the proceeds.

Consultation at no cost

Company directors and advisers are welcome to call David Levi for an initial consultation that will not incur a fee on 0418 602 466. Training for advisers in relation to these and other topics can also be arranged via videoconference.

Levi Consulting services all Australian States and Territories.

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Voluntary Administration vs Liquidation: VA vs CVL Guide