Question 1

What is Voluntary Administration?

Accepted Answer

Voluntary Administration is a formal insolvency process under the Corporations Act where an independent administrator is appointed to assess whether a company can be saved or restructured. It provides a moratorium on creditor action and typically lasts 20–25 business days.

Question 2

What is Safe Harbour for directors?

Accepted Answer

Safe Harbour (s588GA of the Corporations Act) protects directors from personal liability for insolvent trading while they pursue a restructuring course of action reasonably likely to lead to a better outcome than immediate liquidation.

Question 3

What is Small Business Restructuring (SBR)?

Accepted Answer

SBR is a streamlined restructuring process for eligible small businesses with total creditor debt under $1 million. Directors remain in control while a restructuring practitioner helps develop a repayment plan that creditors vote on.

Question 4

What is a Director Penalty Notice (DPN)?

Accepted Answer

A Director Penalty Notice (DPN) is a formal notice from the ATO making a director personally liable for unpaid PAYG withholding, SGC (super), and GST. Directors have 21 days to act once a DPN is received.

Question 5

What is the difference between CVL and MVL?

Accepted Answer

A Creditors Voluntary Liquidation (CVL) is used when a company is insolvent and cannot continue trading. A Members Voluntary Liquidation (MVL) is used when a company is solvent but needs to be wound up, often for tax-effective asset distribution.

Question 6

How is Atlee Carter Advisory different from a liquidator?

Accepted Answer

Atlee Carter Advisory provides independent advisory services only and is not a registered liquidator. We give directors and business owners clear, unbiased advice on all available options before any formal appointment is made.