Liquidation is the process used to bring a company’s life to an end. The company property is realised, the creditors paid out in a fixed order of priority and the surplus, if any, is distributed among the shareholders according to the constitution of the company or according to the Companies Act 1993. When these steps have been carried out the company is removed from the register.
There are two types of liquidation.
This section deals with insolvent liquidations.
The directors and shareholders identify that the company is insolvent and the shareholders agree to appoint a liquidator by way of a resolution. The liquidator takes control of the company assets and records and works with the directors and shareholders to bring the company’s affairs to an orderly close. If a company is insolvent then the sooner the company is put into liquidation the better the outcome can be for the directors.
We are more than happy to talk to you and help you determine if your company is solvent or not.
Court Appointed Liquidator
This follows a successful petition to the court to appoint a liquidator and usually follows the service of a statutory demand on the company which was not satisfied. If a winding up application has been served on your company the law allow the shareholders 10 working days to appoint a liquidator.
We strongly recommend that the shareholders do appoint a liquidator. Although a court appointed and shareholder appointed liquidator work to the same rules you are more likely to find that if you appoint Norrie & Daughters then you will be dealing with a more compassionate liquidator who will think outside the square to develop practical and reasonable solutions that will benefit all parties involved in the liquidation.
If your company has been served with an application to put your company into liquidation the directors should contact us NOW - Tomorrow might be too late.