Before Placing A Company Into Liquidation – A Recap
Congratulations, you have taken the plunge and are well on your way now to placing a company into Liquidation. We are going to guide you from the cradle to the grave, every step of the way.
A quick recap on where you have reached having taken that important step to place your company into Liquidation.
By now you will likely have received from us and signed the following documents dealing with how to start a Liquidation:
In addition, we will likely have already verified the identity of the relevant Directors and Shareholders and undertaken our compliance and ethical checks to ensure we can act and accept the engagement. You will likely have already completed our initial company information form.
How Do You Place A Company Into Liquidation?
A Liquidation is not a dress rehearsal. It is the first and last night of the show.
Placing a company into Liquidation has finality so it is important to get it right for you, the company and the creditors.
To place a company into a voluntary Liquidation, the Insolvency Practitioner who is likely in due course to become the Liquidator comes as a total stranger to the affairs of the company.
So he or she will need up-to-date information on the structure and the finances of the company to ensure that accurate information can be provided to the company’s creditors and other stakeholders to enable the Director(s) to comply with their Director Duties.
What Information Is Required To Put A Company Into Liquidation?
So that we can assist you as Director put the company into Liquidation there are two important documents that we will now need to help you prepare:
Using the information you provide to us we will help you assemble these two crucial documents. Although we will fully assist you in accordance with the terms of your engagement with us to prepare them, they remain your responsibility. They are your documents.
Information For The Statement Of Affairs And SIP 6 Report
The Statement of Affairs is a document that will be filed at Companies House. It is an accounting document that lists the assets and liabilities of the company in some detail. More detail than you would see in the balance sheet of a set of annual accounts.
So what information is needed for the statement of affairs and the SIP 6 Creditors Report?
The information that is required (some of which you may well have already provided), to begin with:
- names, addresses and email addresses of all company Directors and Shareholders
- names, addresses and amounts owing to each creditor (including Directors and Shareholders)
- breakdown of all of the company assets by category
- tax references and offices / UTR
- VAT registration number
- VAT deregistration date (if applicable)
- full details of any personal data and sensitive data held by the company
- details of any Information Commissioners Office registration details and GDPR policies
- bank account number / sort code with up to date bank statement
- bank email and address contact details to freeze the bank account
- accountants and tax agents details
- reasons for the Liquidation so that a helpful explanation can be provided to creditors
- explanation of any ‘cash’ based trading activities
- location of the company’s records and a simple inventory of the records held
- last three (or as many as you have if fewer) sets of full accounts showing the profit and loss account
- date trading started
- date trading ceased
Summary Of The Pre-Appointment Phase Of Liquidation
- Pre-appointment notices for the Gazette, shareholders and creditors meetings.
- SIP 6 Report to Creditors and Statement of Affairs.
- Creditors Meeting held to confirm the Liquidation or Deemed Consent Procedure determined.
Want To Place A Company Into Liquidation?
If you want to start a Liquidation we have designed a streamlined process to get you up and running.
Fill in our Company Information Form and we can help you move forward on your business closure journey today.
There is furthermore, the important question of paying for a liquidation. An explanation of this is in our guide When Do I Have To Pay The Liquidator To Put My Company Into Liquidation?.
We are here to help your company through the Liquidation process from the cradle to its final resting place when it is dissolved.
This article applies to insolvent Creditors Voluntary Liquidations only and work done in relation to it, is in accordance with and subject to the terms of each engagement (which may vary from client to client).
Liquidate An Insolvency Company
