Regrettably, it is often not possible for a company to continue to trade or to sell its business.
In this case the company will need to be placed in liquidation and have its assets sold off. The proceeds of the sale are then distributed to the creditors, in a defined order of priority. Liquidation is, with only a very few exceptions, the end of the road for a company and it will then be removed from the companies register.
We can assist with the following forms of Liquidation:
Creditors Voluntary Liquidation (CVL)
When a company is insolvent and there is no hope of saving the business, the only option left is for the members (shareholders) to pass a resolution to wind up the company. A meeting of creditors is called to consider the winding up and the appointment of the Liquidator who will realise the assets and pay creditors according to their rights in the Liquidation.
Members Voluntary Liquidation (MVL)
When the business carried on by a company has come to the end of its normal cycle or, after selling the business, there is nothing left but cash and a few other assets, the owners of the company may decide to wind-up the company. The members appoint a Liquidator and he distributes the assets according to their wishes. Very often there are important tax considerations to bear in mind.
In some circumstances, the company is wound up by an order of the court, usually on the petition of a creditor. The Liquidator will be the Official Receiver but in certain circumstances the court may appoint a Licensed Insolvency Practitioner to carry out the functions of the Liquidator.