Our company has just been put into liquidation. I’m concerned about whether our family’s personal assets are at risk or only the company’s assets?
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by Kelly Angus, Adelaide 5000 SA
- Generally speaking the liquidator can only take possession of the company’s assets.
- However if they are able to prove that you have taken company assets for your personal use the liquidator may recover these.
- Also if you received a director’s loan from the company the liquidator can recover these monies and may take legal action.
- The liquidator may take recovery action against you as a director if you engaged in insolvent trading and if necessary commence bankruptcy proceedings against you. If you are bankrupted the trustee in bankruptcy may sell your personal assets to satisfy the liquidator’s claim.