Solvent windings up aren’t that straightforward

ARITA has noted a recent article published by CA ANZ providing guidance to Chartered Accountants (CAs) that are not liquidators around windings up of solvent companies.

We appreciate the steps CA ANZ is taking to educate its members. However, since the introduction of the Insolvency Law Reform Act (ILRA), the process for the winding up of solvent companies is not as straightforward as it once was and may represent a significant risk to accountants in public practice who are not across the more complex requirements brought in by the ILRA.

The article refers readers to a flowchart on the ASIC website. Unfortunately, this flowchart has not been updated by ASIC for changes arising from the ILRA in 2017 and does not provide users with the current lodgement requirements in a solvent winding up. Furthermore, this flowchart does not deal with all the tasks that need to be undertaken by a liquidator.

We note that the article suggests that CAs contact ARITA for specific advice for their client’s particular circumstances. ARITA does not provide client advice and is unable to provide technical assistance to non-members of ARITA.

Due to the complexities of the winding up process, we have urged CAANZ to encourage CAs to direct liquidation work to joint CA ANZ/ARITA members who are registered liquidators.