Keep each creditor claim separate when organising a joint response

A shared concern does not create one claim

Several suppliers receive a liquidation report indicating little money is available. They decide to coordinate questions about possible further work. Keep each creditor's claim and authority clear while obtaining advice. A group discussion can help organise concerns, but one participant should not assume permission to disclose everyone else's information, promise contributions or give instructions on their behalf.

Identify the participants properly

Imagine three subcontractors asking one director to assemble questions for the liquidator. Record the legal creditor entity for each business and its nominated contact. Keep their balances and supporting documents separate. A combined total may describe the group's concern, but it should not replace the individual claim information or be presented as a jointly owned debt without a proper basis.

Respect the liquidation process

ASIC explains that a liquidator has duties to all company creditors. A coordinated group should therefore use the stated communication process and avoid assuming that its size gives it control over an investigation. Ask how relevant questions or evidence can best be submitted. Obtain independent advice before treating informal group agreement as authority to direct work or commit money.

Source: ASIC: Liquidation, a guide for creditors

Agree what may be shared

In the subcontractor example, one participant may hold commercially sensitive project records. Ask that creditor what can appropriately be included and whether information should go directly to the liquidator or adviser. Do not circulate complete account files to everyone merely because all participants are unpaid. Separate first-hand evidence from a jointly drafted summary and identify its actual source.

Keep proposed contributions individual

If funding is discussed, obtain the specific proposal and advice before anyone commits. Record which creditor has actually approved an amount and which is only considering it. Do not tell the liquidator that the group has secured funds based on a casual expression of interest. Contributors need to understand the relevant terms, risks and their own authority to make the decision.

Return updates to the right people

Keep a record of questions submitted, responses received and any action each creditor must take separately. Make the coordinator's limited role clear and arrange a replacement if unavailable. A useful joint response makes communication more accurate. It should not blur individual claims, disclose records without proper authority or create promises that the participating businesses have never actually approved.