A company that owes me money is now in liquidation but I’ve heard that some other creditors have been given warehouse stock since they can’t get cash from the owners. This seems really unfair as I think the stock should be sold and the proceeds shared by all the creditors. Will the liquidator be able to find out if that has been happening and get the stock back?
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Answer by Kelly Angus, Adelaide 5000 SA
- The liquidators should be able to help with this. Upon appointment the liquidator must take steps to establish the following:
- why and when the company became insolvent;
- whether the directors have engaged in insolvent trading;
- whether any preferential payments were made to creditors and whether they may be recovered;
- whether any offences may have been committed by the company’s officers;
- whether any void transactions took place and whether they can be overturned; and
- whether it is possible to make any other recoveries.
- The liquidator has broad powers to help with their investigations including powers to hold public examinations, seize books and records and access property.