Liquidation Services

When the Company reaches the end of its life, or becomes insolvent, one of the options open to it is to be formally wound up by a liquidation process. The three main liquidation options are creditors voluntary liquidation, court liquidation and a members voluntary liquidation.

A creditors voluntary liquidation is the most commonly used procedure for dealing with an insolvent company. In summary, the directors “voluntarily” place the company into liquidation. The company is initially placed into liquidation by the shareholders passing the appropriate resolution. At the subsequent creditors meeting the creditors are provided with an opportunity to appoint to appoint their choice of liquidator.

A court liquidation occurs when a petitioner petitions the High Court to appoint a liquidator. It is generally used by creditors of a company seeking payment of monies due to them. However, the process may also be used by disgruntled shareholders etc. A court liquidation may be referred to as an “official liquidation” or a “compulsory liquidation” (i.e. the company is compelled to go into liquidation by a petitioner.)

A members voluntary liquidation is the procedure used to deal with solvent companies. Under this type of liquidation, all creditors are paid in full, and the surplus is returned to the shareholders.

For further information about each of the above types of liquidation, please see below.

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If you wish to discuss any of the different available options, please do not hesitate to contact us.