Sometimes after all other options have been explored a Company Liquidation becomes necessary.
Liquidation is the process of formally winding up a company for the benefit of creditors. There are two types of voluntary liquidation: creditor’s voluntary liquidation – where there are insufficient assets to pay all creditors, or in other words the Company is insolvent – or a members’ voluntary liquidation, where there are sufficient assets to cover all creditors and a surplus is likely to remain for the benefit of shareholders.
A creditors’ voluntary liquidation occurs when the directors and shareholders of a company resolve that the company is insolvent and its affairs should be wound up. It’s a fast and effective strategy to deal with a company and its assets and affairs, and ensures Directors comply with their statutory duties.
Before you make a decision to appoint a liquidator we would strongly suggest that you speak to one of our consultants first – remember that a Liquidator works to benefit creditors where as we work to protect the best interests of you the Company Director and our focus is on what works best for you.