GM Advisory works with directors to help them mitigate risk. This usually involves a restructuring process of one sort or another and key to our approach is keeping directors informed about costs and benefits. As with many elements of business, restructuring and mitigating risk involves choices; understanding the cost of doing or not doing one thing in favour of another. We understand that restructuring or ceasing a business can be daunting.
The terminology in this highly specialised area can be confusing – what is small business restructuring or voluntary administration? What is the difference between an illegal phoenix and a legal phoenix; what is the consequence of a voluntary or involuntary deregistration of a company? Am I liable for insolvent trading, unfair preferential payments and the list goes on. There are some helpful links here to explain these terms and many others.
Protection given to Directors when there is a possibility of financial distress looming so as not to trigger the unnecessary appointment of an insolvency practitioner. Can give the directors the green light to continue trading.
Director Duties & Advocacy
Not every director is accross their responsibiliteis when it comes to the Corproations Act. An extra set of eyes is helpful – especially when dealing with insolvency practitioners who put other stakeholder interest’s ahead of directors.
There are various ways to cease operations and careful consideraiton is necessary depending on the underlying entity structure.
Whether you need to negotiate a repayment arrangement or find a loan to repay the ATO or any creditor; understanding available alternatives and selecting the best option for you is crucial. Over extending family finances needs to be carefully considered. Knowing the tipping point matters.
Capitalisation of your company’s operations is crucial. Finding finance can be difficult. Consider all options including private finance.
My thoughts on some of the issues that business people in Australia face when dealing with insolvency issues today. Read here.