An appointed and licensed Liquidator is required for Liquidation and they have several duties in their position. After their appointment, these experienced professionals have the responsibility to act as an impartial third-party to oversee the process from beginning to end.
The role of a Liquidator encompasses various responsibilities which include, but are not limited to:
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Creating a Statement of Affairs document for the Creditors, with the assistance of Directors. This is a financial statement explaining the business’ position in some detail.
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Distributing the realised assets and surplus funds to the appropriate parties.
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Determine any outstanding claims against the business and satisfy those claims in order of priority set by law.
Getting Good Advice
For any Company faced with the prospects of Liquidation, it is vitally important to be fully aware of all the options available and to get advice from experts in the field.
What is needed, before any decision can be made with regards this subject, is clear and impartial guidance.
This is where Solvendi can help. Call us directly to find out more or to book a free consultation before making any life changing decisions.
Here is some more information
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.
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.
There is a basic cost for compliant companies. The following factors must also be considered before Liquidation can occur successfully. Costs will vary based on these factors.