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Problem:
Small Business Pty Ltd ('Small') was in the business of running a coffee shop. Patricia and Peter, the directors of the company have decided to retire from the family business and so the decision was made to wind up the company.
Patricia and Peter as directors provided their declaration of Small's solvency, on 14 March 2022, the shareholders of Small passed a special resolution to wind- up Small and Mark was appointed as liquidator of Small. However, initial investigations by Mark have indicated that Small is not solvent, but insolvent and has been so for a number of months. In accordance with his obligations under s496(1) Corporations Act ,Mark has convened a meeting of Small's creditors who have confirmed his appointment as Liquidator of Small Business Pty Ltd .
You are required to advise Mark, the liquidator of Small on the following:
Please include in your answer the relevant sections of the Corporations Act to support your answer.
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