Compenny Liquidators

Hi, I'm Louisa Ciderbath, a liquidator and bankruptcy trustee. Today's question is, how does a company liquidation affect the company's director? So there are a few areas to consider. Firstly, the company director can continue to be a director of other companies. Now, if there happens to be two or more liquidations within seven years where that person is a company director, ASIC can consider whether to strike that person off from being a company director in the future. However, this is discretionary, it's not an automatic happening and it depends on the circ Also, the director needs to consider if he or she has signed any personal guarantees that might be triggered by the company's liquidation. Typically, directors might not be aware of what they've even signed. So common places to look include the company's premises lease, any motor vehicle or plant equipment leases and any supplier accounts, especially with large trade suppliers, although it can be with any party really. Ideally, the company will have kept a register of personal guarantee signed, but usually this isn'the case, especially in small-medi The director also needs to consider if there's any ATO or taxation liabilities that have triggered either under a director penalty notice or some sort of automatic attachment to personal liability. So I'm fairly sure there's another video on this topic, but it is something to look into or at least ask the question of or find out some more information about from a professional. Also, they need to consider if there's any loans in the account, especially sitting in the asset section or sitting as a negative liability that will trigger on liquidation. Because if the asset, if the loan is sitting there as an asset, as in an account's receivable or loan receivable, when a liquidator is appointed, they have a responsibility to collect the assets of the company and that includes collecting its debtors, whether from related parties or other parties Something to work out is if there's a loan there, what is the liquidator proposing to do about it? Can a settlement be breached or is the liquidator or what is the liquidators approach really? Definitely should be discussed before any liquidation. Also, the liquidation of the company may appear on the director's personal credit report as them having been a director of a company in liquidation. Now the usual question that follows from this is will this impact the director's ability to say get a home loan in the future or investment property loan or borrow again? And the answer to that is it depends. It depends on the lender who they're going to or seeking to borrow money from at the time at some point in the future. And it also depends on what other items they may have on their credit report. So is this one of many liquidations? Is this one that can be explained, for example, by COVID devastating that particular business and that company having to go into liquidation? So in s