Section 530B: What Records Must Be Provided to a Liquidator?
One common question accountants and lawyers ask after receiving a liquidator’s demand for records is: what do we actually have to provide?
The simple answer is: the company’s books and records that you hold.
Under section 530B of the Corporations Act, a liquidator can issue a written notice requiring a person to deliver up books of the company in their possession. The notice must give at least three days to comply.
The important qualifier is that it is only books of the company. That usually means records that belong to the company or in which the company has a proprietary interest.
Working papers are a different issue. Internal file notes, draft analyses, internal checklists or your own commentary are not automatically books of the company just because they relate to the company.
Handing over existing company books and records is one thing. Preparing reconciliations, reconstructions, explanations, schedules, returns or financial statements is another. If extra work is required, scope, timing and payment should be agreed upfront.
