From a legal perspective, the Corporations Act 2001 defines a person who is not solvent as being insolvent (s.95A (2)).
^Top To determine if a company is actually insolvent the following question is asked: Is the company financially able to pay (in full) all of its debts as and when they are due?
The Home Australia group went into liquidation yesterday.
Irate customers of Huxley Homes say they have been raising the alarm on shoddy workmanship, extensive delays, and financial problems at the company for months.
The “Members’ Voluntary Liquidation” Solution A person with a company that is solvent; and no longer wants the company for whatever reason.
So how do you mitigate against this particular risk? If it’s not possible to inspect the stock, you should ask for a significant discount to reduce your risk of making a bad decision.
Customers of the New South Wales subsidiary of federal senator Bob Day's collapsed building company Home Australia, say they suspect the building empire was in financial trouble for months before its demise.
Senator Day has blamed Huxley Homes, the NSW arm of Home Australia, for the woes that forced the building empire into liquidation.
Sydney mother-of-four Elizabeth Scuteri said she was asked by the company as recently as last week to pay a ,800 premium for home owner's warranty insurance.
Ms Scuteri said Huxley Homes had filled out application forms to take out the insurance, but the forms were never lodged.