Notifying of company solvency

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As part of the annual review process, companies need to pass a resolution regarding the solvency of their business. This usually occurs within two months following the annual review date.

The outcome of the solvency resolution can be:

Positive — the directors of a company believe that the company will be able to pay it's debts as they're due.
Negative— the directors of a company believe that the company won't be able to pay it's debts as they're due.
No resolution passed — The directors have not passed a resolution within two months of the review date.

Depending on the outcome, you might need to lodge a form 485 - Statement in relation to company solvency for the company.

If the resolution is...

Positive

You don't need to lodge this form, but the directors should still retain a copy of the resolution for their own records.

Negative

You'll need a lodge form 485 - Statement in relation to company solvency.

To avoid a fine, lodge this document within 7 days of the date of resolution.

No resolution passed

You'll need a lodge form 485 - Statement in relation to company solvency.

This needs to be lodged within the 7 days after the end of the 2 month period following the review date.

For example, if the review date is 12 March 2019 and the directors have not passed a resolution as of 12 May 2019 (i.e. two months after the review date), the company has until 19 May 2019 to lodge this form.

The directors should still retain a copy of the resolution for their own records.

To notify of solvency status

Select your client from My List and click Corporate admin on the top-menu bar.
Click Company forms on the top-right of the screen and choose Notify of company solvency. The Notification of company solvency - Form 485 page appears.

Select the solvency status:

Solvency status
Negative solvency resolution passed	The directors of the company have passed a solvency resolution under section 347A that, in their opinion, there are reasonable grounds to believe that the company WILL NOT be able to pay its debts as and when they become due and payable.
Solvency resolution not passed	The directors of the company have not passed a solvency resolution under section 347A within the statutory two month period after the review date.

Enter the Date of resolution where the negative solvency resolution was passed or, the Company review date if the solvency resolution was not passed.
Under Signatory details, click on the drop-down arrow and select the signing officer. The officer name appears in the Select a signatory field.
Click Send for signing. A new task is created and assigned to the client for signing.

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