If you are a director of an insolvent company Oliver Elliot can help you address your concerns, help you explore the options for closure, Liquidation and rescuing the business by a Creditors Voluntary Liquidation Procedure.
Creditors Voluntary Liquidation Procedure: The Basics
In a Creditors’ Voluntary Liquidation, the shareholders appoint an authorised insolvency practitioner to act as the liquidator.
This appointment will then need to approved by the creditors at the creditors’ meeting.
This usually takes place three weeks after the initial engagement.
The directors must hold a meeting to confirm that the company is insolvent and that steps are being taken to place the company into a Creditors Voluntary Liquidation.
The Meetings: Creditors Voluntary Liquidation Procedure
The shareholders’ meeting will normally take place immediately before the creditors’ meeting. If the shareholders agree to the liquidation, they can then confirm the directors’ choice of the liquidator.
After the shareholders’ meeting, there must be a creditors’ meeting, which is often held on the same day.
Creditors must receive a statutory minimum of 7 days notice of the meeting.
Assets Liquidated: Creditors Voluntary Liquidation Procedure
Once the Liquidator has been appointed the business of the winding up of the company can formally commence. Typically, agents will be instructed to value the assets if this has not already been done and asked to realise them for the best value.
Upon completion the costs and expenses of the Liquidation will be discharged. Thereafter the company will be prepared for formal closure leading to its dissolution.
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If you have any questions Creditors Voluntary Liquidation Procedure then Contact Us as soon as possible for advice. Our expertise is at your fingertips.
This page is not legal advice and not to be relied upon as such. If in doubt you should take independent professional advice on the facts of your case. This guide is just for information purposes only. No liability is accepted for any reliance placed upon it. The legal issues in this page often arise from the Insolvency Act 1986.