The two most common forms of liquidation are:
Members Liquidation
This occurs when the directors and shareholders decide to liquidate a company even though the company is solvent. This may occur when a business ceases, yet still holds substantial assets. The best option may be to liquidate in order for the shareholders to obtain their portion of the company’s net assets. It is imperative to obtain professional advice before taking this option.
Creditors liquidation
A Creditors Voluntary Liquidation (CVL) procedure is the most common type of liquidation. This is initiated when a company can no longer pay their debts as they fall due (i.e. it becomes insolvent). The creditors then have the option to appoint a Liquidator.
Our Liquidation Services
We can provide you with guidance on the liquidation process and we provide a free initial consultation to discuss whether your company is suitable for liquidation.
Although we do not perform liquidations ourselves, we can provide a company director with a list of liquidators who provide this service. Once a liquidation has commenced, we will have no input into any aspect of the process. Any dealings a client has would be directly with a liquidator. Consequently, we hold no responsibility for the work carried out by any liquidator on behalf of a company.
We can however, assist the directors in preparing a Statement of Affairs which is necessary before a liquidation commences. We can agree a fee structure with the client for the preparation of this Statement.