When a Company runs into financial difficulties events can move alarmingly fast. This is why you’ll need the expertise of a legal team that can respond quickly and think on its feet. A team that can navigate you through the storm. Solvendi’s attorneys can assist with Company Liquidations Nationally no matter what Province, City or Town you operate in. We have the track record and expertise to take the necessary steps to minimise damage and to try and keep compulsory insolvency proceedings at bay.
What would you like to know?
If you are a Company Director who wishes to shut down your business (also called winding up), or is being forced into that situation by Creditors, then you’ll need to understand your options.
There are 3 types of liquidation;
1. Creditors' Voluntary Liquidation - for companies with debts; 2. Members' Voluntary Liquidation - for companies with no debts; 3. Compulsory Liquidation.
The process in which a company voluntarily proceeds to declare itself insolvent or where a Creditor of the Company brings an application to court to have the company declared insolvent.
An appointed Liquidator has several duties. After their appointment, these experienced professionals have the responsibility to act as an impartial third-party to oversee the process from beginning to end.
Ranking of Creditors
In a Liquidation process Creditors receive proceeds in line with how they are ranked. There are 3 distinct types of Creditors.
1 Secured Creditors. 2 Preferential Creditors. 3 Concurrent Creditors.
The principle effects of all Liquidations are that (a) the Company stops trading (b) the powers of the Directors cease However, other effects will depend on what type of Liquidation has taken place.