We’ve been researching the circumstances of a once highly successful liquor manufacturing business, with a huge client base – domestically as well as around the world.
This business had grown and prospered for more than 50 years until this year. This hard work was all undone overnight when it was wound-up by an aggressive ATO.
Our research indicates some or all of the situation could have been avoided with more thoughtful structuring and asset protection arrangements.
The business was wound up, more or less overnight, by the ATO.
50 years of hard work bought undone overnight.
Business Asset Protection, applying the research this case has uncovered, is offering free business structuring health checks for companies – particularly in high tax sectors such as liquor, with slow paying wholesale customers or those experiencing growing inventory levels.
To arrange a free structuring health check call now on 1300-327123 or complete the below form.
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Insolvency in general terms, as it relates to a corporation, is the inability to pay debts as and when they become payable.
A company is also insolvent if it is experiencing an ‘endemic shortage of working capital’ as opposed to a temporary lack of liquidity.
Determining the difference at a point in time during the corporation’s life is a question for a court to determine .
Indicators of insolvency include:
- continuing losses,
- no access to alternative finance,
- the inability to raise further equity,
- special arrangements with selected creditors,
- solicitors’ letters or judgments issued against the company,
- overdue taxes,
- failure to keep books and records, etc.
The list is indicative and not exhaustive.
Companies experiencing any or all the above indicators should book a free consultation by clicking here then where we’ll provide you with company specific advice re insolvency in your instance. Alternatively call us on 1300-327123 (till late) or complete the form below.
This post launches our blog series where we will discuss a range of topics which are perhaps important to those holding assets, their advisors, mortgage brokers and private lenders and others.
In the coming week/s this blog will discuss:
- A range of relevant legal terms and their meaning/s.
- Securities in Australian law such as the PPSA, common law and otherwise.
- Insolvency – including personal and corporate insolvency.
- some case studies.
- various legal remedies, and
- other related topics.
We welcome your feedback.
Mark Smith, Director
Business Asset Protection