As business confidence weakens and corporate insolvencies rise, effective asset realisation and creditor protection are under increasing scrutiny. For liquidators, engaging a suitably qualified, independent valuer is essential to establishing defensible asset values, protecting creditor interests and demonstrating sound professional diligence. This is why the services of AVAA Certified Valuers (CVAu) are more critical than ever.
Under section 477(2)(c) of the Corporations Act 2001 (Cth), liquidators have the power to sell or otherwise dispose of company property. Section 477(1) also requires liquidators to take custody or control of property to which the company is, or appears to be, entitled. These responsibilities frequently involve specialised non-property assets, including plant and machinery, commercial vehicles, fine art, antiques, collectables and business equipment. Establishing their value requires more than an indicative auction estimate or an assessment based on advertised asking prices.
Section 477 of the Corporations Act imposes specific powers and responsibilities on liquidators. In exercising their statutory functions, liquidators must also comply with applicable professional and regulatory obligations. For liquidators engaging external valuers, the distinction between an opinion of value and a professionally substantiated valuation is therefore significant, which is why they need to be careful in their choice of valuer.
An AVAA Certified Valuer (CVAu) provides independently assessed professional competence, relevant asset-class expertise and accountability against recognised national professional standards. These safeguards are particularly valuable where creditors, ASIC, financiers, or the courts may scrutinise valuations.
Why The Services Of A Certified Valuer Matter —
The respected AVAA Certified Valuer (CVAu) credential identifies practitioners assessed against professional competency and reporting requirements. Certification ordinarily requires five years’ valuation experience, a demonstrated capacity to produce professional valuation reports, and professional indemnity insurance. For liquidators, the CVAu credential provides independently assessed credentials, enforceable professional standards and greater confidence that specialist asset valuations are supported by appropriate methodology, evidence and professional accountability.
A critical consideration in insolvency is the distinction between market value and the proceeds achievable through an accelerated or constrained disposal. Under the draft of AVAA Professional Standard 17 – Valuation Definitions and Methodology, market value assumes a transaction between willing, knowledgeable parties following proper marketing and without compulsion. Liquidation circumstances may involve restricted marketing periods, incomplete asset records, removal costs or limited buyer participation. Accordingly, a distressed realisation price should not automatically be treated as market value. The valuation must identify the applicable basis of value, valuation date, assumptions, restrictions and supporting market evidence.
ASIC’s oversight of registered liquidators under the Corporations Act and the Insolvency Practice Schedule (Corporations), contained in Schedule 2 to that Act, reinforces the importance of proper administration, accountability and documentation.
ASIC’s guidance concerning creditor-defeating dispositions also highlights the significance of asset values in determining whether company property has been disposed of for less than its market value or, where applicable, the best price reasonably obtainable. Section 588FDB specifically addresses these considerations. For liquidators, this creates a compelling reason to obtain valuations that can withstand independent examination. A valuation supported by professional certification and documented methodology offers an evidentiary advantage over an unsupported opinion from an uncredentialled practitioner.
While ASIC does not mandate the use of a AVAA Certified Valuer (CVAu), liquidators should consider how a prospective valuer’s qualifications, asset-specific experience, independence, insurance and professional accountability can be independently verified.
The Relevant Professional Standards —
A key document is AVAA Professional Standard PS6 – Minimum Valuation Report Requirements that provides expectations on what the report will include, such as guidance on the valuation methodology and supporting evidence. PS9 addresses conflicts of interest, PS11 governs record keeping and PS14 establishes engagement requirements. Together, these standards provide liquidators with a transparent framework for commissioning, reviewing and relying upon specialist valuations of non-property assets.
The relationship between valuation and asset realisation is equally important. A professional valuation report will guide reserve prices, disposal methods, marketing strategies and negotiations with secured creditors, while distinguishing an independent opinion of value from the eventual sale outcome.
These issues will feature at the 2026 AVAA Auctioneers and Valuers Symposium in Sydney on 21 October 2026 and Melbourne on 20 October 2026, which will examine insolvency liquidations, asset security, valuation evidence, sale strategies and the responsibilities of auctioneers working with insolvency practitioners.
As scrutiny of insolvency administrations continues, the respected CVAu credential provides an increasingly relevant benchmark for liquidators selecting specialist valuers. For valuers, it also demonstrates why professional certification matters. The ability to substantiate valuation conclusions through recognised standards, verified competence and professional accountability is becoming an important point of distinction in a market where the consequences of unreliable valuations can be substantial.
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Interested In Finding Out More?
If you’d like more information in the 2026 Auctioneers and Valuers Symposia, send an email to cpd@avaa.com.au or telephone 1300 928 165. You can also stay up to date by following AVAA on LinkedIn, X/Twitter and Facebook.
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