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A winding-up application is not a warning—it is a formal legal step filed in the Federal or Supreme Court to liquidate your company. If the court grants the order, your business ceases trading, directors lose control, and a liquidator is appointed to sell off all assets.

Typically triggered by an unpaid debt of at least $4,000, this action often follows a failure to comply with a 21-day Creditor’s Statutory Demand. Once filed, it becomes a public record, potentially alerting banks, suppliers, and customers to your financial distress.

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The path from an application to liquidation is swift, but there are multiple points where a powerful legal defense can intervene:

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