When the liquidator of a company comes knocking on a creditor’s door, it is to echoes of "Queue jumper!" reverberating in the background. 

Essentially, one of a liquidator's first tasks when appointed is to identify whether any creditors have been given 'preferential  treatment' - that is, whether they have been paid some or all of their debt just prior to the company's liquidation and at the expense of other creditors.

As a business owner or company director, there are many elements you need to consider on a day to day basis to ensure your business runs smoothly. If you lease your premises it is important to understand your rights and what risks you face as a tenant.

A recent decision in the High Court of Australia gave liquidators of landlords extra powers to disclaim leases that are registered on title. For example, if a landlord leases a site to a tenant, and the landlord subsequently goes into liquidation, the liquidator does not have to abide by the terms of the lease, and may refuse to recognise the lease and ask the tenant to vacate the site.

Facts