Glossary of Insolvency and Liquidation Terms
Definitions for commonly used insolvency and liquidation terms in Australia
ABN
Australian Business Number comprising of 11 digits
ACN
Australian Company Number, comprising of 9 digits
Appointment Date
The date the Company goes into external administration
Appointee
The insolvency practitioner who will be in control of the Company
Company Name
A company name is identified by Pty Ltd or Ltd as part of the name.
Creditor’s Voluntary Liquidation
A process to appoint a liquidator and wind up a company for the benefit of creditors.
Directions Hearing
An interim Court hearing to timetable any steps to be taken before a full hearing.
First Meeting Creditor (date)
A meeting to give creditors an opportunity to replace the voluntary administrator and vote on some standard administrative matters.
Hearing Date
When the matter is next in court.
Liquidation
The winding up of the affairs of a company – creditors may or may not receive a payment at the end of the process. This may be ordered by a court.
Member’s Voluntary Liquidation
The process for winding up a solvent company – all creditors are paid.
Petitioning Creditor
The creditor is who is asking the Court to wind up the Company.
Proof of Debt Due (date)
A process to appoint a liquidator and wind up a company for the benefit of creditors.
SBR
Small business restructure – a process that allows smaller companies to part pay debts and trade on.
Solicitor
The formal term for “lawyer” who has lodged the paperwork on instructions.
Winding Up Application
A Court process that results in a liquidator being appointed to a company.