What are the opening hours?

Monday 8:30am - 5pm Tuesday 8:30am - 5pm Wednesday 8:30am - 5pm Thursday 8:30am - 5pm Friday 8:30am - 5pm

Menzies Advisory

Home
Australia
Southport, QLD
Menzies Advisory

Liquidators & Receivers - Gold Coast, Brisbane, Sydney, Melbourne Our expert team consists of Registered Liquidators and qualified Accountants.

Menzies Advisory Liquidators & Receivers are specialists in corporate insolvency, corporate turnarounds and corporate evaluations. We have over 40 years experience and offer professional, compassionate and trusted insolvency, company administration and consulting services. We understand the difficulties associated with external administration and seek to make this time as stress-free as possible for effected stakeholders. We have empathy for your situation.

27/08/2026

Most liquidations are voluntary — the directors and shareholders decide to appoint a liquidator. But creditors can also force the issue through the courts.

A **compulsory winding up** (or court-ordered liquidation) typically starts with an unsatisfied statutory demand, followed by a winding up application in the Federal Court or the relevant state Supreme Court.

The mechanics:

→ Creditor issues statutory demand
→ Company fails to pay or apply to set aside within 21 days
→ Presumption of insolvency arises
→ Creditor applies to wind up the company
→ Court hearing (typically 4–6 weeks after filing)
→ If no defence succeeds, orders are made appointing an Official Liquidator

Why this route is used:

→ The company won't voluntarily appoint a liquidator
→ The directors are unresponsive or missing
→ The creditor wants an independent liquidator without director influence
→ There's suspected misconduct that the creditor wants investigated
→ Prior voluntary appointments have been mishandled

For directors on the receiving end of a winding up application:

→ The application is public — it will be listed on ASIC and often published
→ Attempting to appoint your own liquidator after the application is filed doesn't automatically defeat it
→ The court has discretion to appoint the creditor's nominated liquidator
→ Personal reputational and financial consequences follow quickly

If a winding up application has been served, urgent advice matters. Options exist, but the window is measured in days.

Learn more at www.menziesadvisory.com.au or you can call us on 1300 948 593.

25/08/2026

Almost every commercial lease, bank facility, and material trade account carries a personal guarantee somewhere. Most directors sign them and move on. Very few think about them again — until the company can't pay.

Here's what typically unfolds when a guarantee is called on:

**First**, the bank or creditor demands payment under the guarantee. The demand doesn't require the primary debtor (the company) to have exhausted every option — the guarantee usually says the creditor can proceed against the guarantor at any time after default.

**Second**, the guarantor becomes liable for the whole guaranteed amount, not just the shortfall. If the creditor later recovers something from the company, the guarantor gets credit — but they're on the hook for the full number in the meantime.

**Third**, the guarantor's assets are exposed. Family home, investment properties, savings, and shareholdings can all be pursued through judgment enforcement.

Practical protections you should always check before it's too late:

→ **Is the guarantee capped**, and at what amount?
→ **Does it have a fixed term** or does it renew automatically?
→ **Are there notice requirements** for calling on it?
→ **Was independent legal advice** obtained at signing? (This can matter for enforceability if a spouse or non-director was involved.)
→ **Has the primary debt been varied** in ways that might discharge the guarantor?

For directors: audit your personal guarantees now, while the company is healthy. Know what you've signed and what it's worth.

Learn more at www.menziesadvisory.com.au or you can call us on 1300 948 593.

21/08/2026

A liquidation isn't automatically a personal disaster for a director. But when it becomes one, the pathway is predictable.

Here's how personal exposure typically unfolds:

**Stage 1 — Corporate insolvency**
Company is liquidated. Director loses control of the entity, but personal finances remain separate at this point.

**Stage 2 — Personal claims crystallise**
DPN liabilities, personal guarantees, loan account demands from the liquidator, and any insolvent trading claims all become personal debts.

**Stage 3 — Demand and negotiation**
Creditors demand payment. Some are willing to negotiate; others (including the ATO) may move quickly to enforcement.

**Stage 4 — Personal insolvency options**
If the director can't satisfy the claims, three main paths open up:
- **Bankruptcy** (voluntary or on a creditor's petition)
- **Personal Insolvency Agreement** under Part X of the Bankruptcy Act — a compromise with creditors
- **Debt Agreement** under Part IX — for lower-value personal debts within statutory thresholds

Each has different consequences for professional licences, credit access, travel, and future business activity.

For directors facing this: the corporate insolvency doesn't have to become a personal one, but the difference is usually made in the weeks after the appointment — not the months. Advice at the right time matters.

For advisors: don't assume a client whose company has failed is beyond helping. The personal position is usually still workable if addressed early.

Learn more at www.menziesadvisory.com.au or you can call us on 1300 948 593.

19/08/2026

Everyone in the insolvency space knows about unfair preferences. Fewer people appreciate that **uncommercial transactions** under s588FB are often the more powerful recovery tool.

An uncommercial transaction is one where a reasonable person in the company's circumstances would not have entered into the transaction, having regard to:

→ The benefits (if any) to the company
→ The detriment to the company
→ The respective benefits to other parties
→ Any other relevant matter

The scope is deliberately broad. Common examples:

→ Selling assets to a related party below market value
→ Guaranteeing debts of related entities for no consideration
→ Paying inflated management fees to associated entities
→ Forgiving debts owed to the company
→ Granting security for existing (unsecured) debts of related parties

Why it matters:

→ Recovery period extends to **4 years** for transactions with related entities (2 years for others)
→ No requirement to prove the recipient knew of insolvency (unlike preferences)
→ Can catch transactions structured to look commercial but lacking substance

For directors and their advisors: the "related party friendly" arrangements that made sense when the company was healthy can look very different when reviewed through the lens of s588FB. If a company is heading toward insolvency, every related-party transaction is a candidate for later scrutiny.

Learn more at www.menziesadvisory.com.au or you can call us on 1300 948 593.

17/08/2026

This is one of the most common things we hear from directors in distress. It's also one of the most dangerous.

The thinking is intuitive: the current company has too much debt, the brand still has value, the customers still want the service. So close Company A, open Company B, and start fresh.

What actually happens:

→ **Phoenix laws engage.** Asset transfers from A to B at undervalue are voidable, and now carry personal liability under s588FDB
→ **ASIC tracks directorships.** Every director appointment in B is matched to A through the DIN system. A pattern triggers investigation
→ **Director penalty exposure carries over.** Unpaid PAYG, GST, and SGC from A are personal liabilities — opening B doesn't make them go away
→ **Creditors of A pursue B.** If B is operating in the same premises, with the same staff, the same customers, and the same equipment, the corporate veil gets very thin
→ **Personal guarantees survive.** Closing A doesn't extinguish them
→ **The new company starts under a cloud.** Banks, landlords, and suppliers run searches and ask questions

The lawful version of "starting again" exists. It's called restructuring or liquidation followed by a properly structured new venture. It involves:

→ Independent valuation of any assets transferred
→ Arm's-length pricing
→ Proper disclosure to creditors
→ A liquidator running the closing process so director conduct is clearly recorded
→ Often, advice from an insolvency lawyer alongside the practitioner

The "quick fix" version is the version that destroys the director's personal finances and their reputation. The proper version takes longer but actually works.

If you're a director thinking about this, talk to someone who can show you the legal path before you commit to the one that isn't.

Learn more at www.menziesadvisory.com.au or you can call us on 1300 948 593.

13/08/2026

A director wants to close their company. The bookkeeper suggests voluntary deregistration through ASIC — quick, cheap, done.

Sometimes that's the right call. Sometimes it's a serious mistake.

**Voluntary deregistration** is available when the company:

→ Has assets worth less than $1,000
→ Has no outstanding liabilities
→ Is not a party to any legal proceedings
→ Has paid all fees and penalties
→ Has all members agreeing

It costs about $50 and takes a couple of months.

**The problem:** if any of those criteria aren't met — and especially if there are creditors who haven't been paid — voluntary deregistration is the wrong tool. It doesn't extinguish the debts. It doesn't protect the director. And it can be reversed by a creditor (or ASIC) reinstating the company specifically to chase the director or void transactions.

Worse, deregistering a company that had liabilities can be evidence of director misconduct — particularly if there were ATO debts that the director failed to deal with properly.

**Liquidation** is the right tool when:

→ The company has any meaningful debts it can't satisfy
→ There are assets to be realised and distributed
→ Director conduct needs to be cleanly closed off
→ Employees need access to FEG
→ The directors want certainty that the chapter is closed

Cheap exits aren't always clean exits. The cost of the wrong choice usually shows up two years later.

Learn more at www.menziesadvisory.com.au or you can call us on 1300 948 593.

11/08/2026

A garnishee notice has just arrived. The ATO (or another judgment creditor) has gone over the company's head and instructed the bank, a major customer, or a trade debtor to pay money directly to them instead of to the company.

What this means in practical terms:

→ The bank account may already have been swept
→ Major customers will pay the ATO, not you, until the debt is satisfied
→ The garnishee continues until the underlying debt is cleared or the notice is lifted
→ Operating cash flow can collapse inside 48 hours

What to do immediately:

→ **Don't ignore it.** Garnishees aren't a negotiating tactic — they're enforcement
→ **Engage with the issuing authority.** Most garnishees can be lifted if a credible payment arrangement is put in place
→ **Take advice on what's actually being garnished.** Not all receivables are caught; some may be exempt depending on structure
→ **Communicate carefully with the affected counterparty.** Don't ask them to ignore the notice — that exposes them
→ **Assess whether the business can continue trading.** If the garnishee strangles cash flow, formal insolvency may be unavoidable

What not to do:

→ Open new accounts to "route around" the garnishee — this is often a recoverable transaction and can amount to obstruction
→ Wait it out — the garnishee compounds with every transaction it intercepts
→ Assume the lender or customer will fight it on your behalf — they won't

A garnishee is not the end of the road, but it's a signal the road is much shorter than the business assumed.

Learn more at www.menziesadvisory.com.au or you can call us on 1300 948 593.

07/08/2026

These two words get used interchangeably. They mean very different things, and the difference matters legally.

**Illiquid** means the company can't pay its debts right now, because the money isn't in the bank. But there are assets, receivables, or facilities that will produce the cash in a reasonable timeframe.

**Insolvent** means the company can't pay its debts **as and when they fall due**. The test is the cash flow test under s95A of the Corporations Act. Future assets that can't be converted in time don't help.

Why this matters:

→ **Insolvent trading liability** under s588G is triggered by insolvency, not illiquidity
→ **Safe harbour** is a defence that applies once insolvency is in prospect
→ **DPN exposure** doesn't care which one you are
→ A statutory demand creates a deemed insolvency if unsatisfied — regardless of underlying liquidity

The practical problem: directors regularly tell themselves "we're just illiquid, not insolvent" as a way of justifying continued trading. That self-assessment is rarely tested rigorously, and it's exactly the kind of conclusion that doesn't survive scrutiny in later proceedings.

If there's any doubt, the right response isn't to keep trading and hope. It's to get an independent view — quickly. Either the company has runway and the trading is defensible, or it doesn't and a different path needs to be on the table.

Learn more at www.menziesadvisory.com.au or you can call us on 1300 948 593.

05/08/2026

Every accountant has seen it: the Loan to Director account that's been quietly growing for years. It looks like a balance sheet entry. It's actually a personal liability waiting to crystallise.

Here's what happens when the company goes into liquidation:

→ The liquidator reviews the loan account
→ Demand is issued to the director for repayment in full
→ If unpaid, recovery proceedings are commenced
→ The director's personal assets are exposed
→ Bankruptcy is a realistic endpoint if the loan is large enough and the director can't satisfy it

What doesn't help:

→ "It was offset against unpaid wages" — needs to be properly documented and reflected
→ "It was really shareholder distributions" — needs to be properly declared as dividends with the franking implications
→ "The accountant said it was fine" — the accountant isn't the one being chased
→ "I was always going to repay it" — irrelevant once the company is insolvent

What does help:

→ Regular, deliberate management of director-related balances
→ Proper documentation of any genuine offsets
→ Clean treatment as either dividends, wages, or loans — not a hybrid that defaults to "loan owing to company"
→ Division 7A compliance kept current (this is a separate but related issue)

For accountants reviewing year-end files: the director loan balance is one of the highest-risk items on the balance sheet. The time to fix it is when the business is solvent.

Learn more at www.menziesadvisory.com.au or you can call us on 1300 948 593.

03/08/2026

Most of the discussion about Small Business Restructuring focuses on getting a plan accepted. Less is said about what happens when an accepted plan defaults.

The mechanics:

If the company fails to comply with the terms of the plan (usually missing scheduled payments to creditors), the plan can be **terminated**. Termination triggers some specific consequences:

→ The compromise of debts is **undone** — creditors revert to their full claims
→ Director protection from insolvent trading liability (which paused during the plan) **ends**
→ The company is typically very quickly placed into liquidation
→ A separate, independent liquidator must be appointed — the SBR practitioner is statutorily prohibited from taking the liquidation role (an important independence safeguard built into the regime)
→ ATO debt that was compromised reverts in full, and the ATO is rarely sympathetic the second time around

For directors: an SBR plan is a contract. It's not a one-time discount — it's a multi-year payment commitment. If the cash flow forecast underpinning the plan was optimistic, the plan won't survive its first stress test.

For accountants and lawyers: when reviewing a draft SBR plan, the question to ask isn't "will the creditors accept this?" It's "can the business actually deliver this for 36 months?" If not, you're advising a client into a temporary reprieve followed by liquidation — and they need to know that's the realistic outcome.

Learn more at www.menziesadvisory.com.au or you can call us on 1300 948 593.

Address

Services Available In:
Southport, QLD
4212

Opening Hours

Monday	8:30am - 5pm
Tuesday	8:30am - 5pm
Wednesday	8:30am - 5pm
Thursday	8:30am - 5pm
Friday	8:30am - 5pm

Website

http://www.menziesadvisory.com.au/

Alerts

Be the first to know and let us send you an email when Menzies Advisory posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.