Voluntary Liquidation - a brief guide.
It could be seen that a voluntary liquidation is the end of a business, and indeed it is often known as a burial process. An experienced insolvency practitioner will look at matters slightly differently however, in that they can often see the closing of one company, as an opportunity to save a business whilst closing a loss performing shell. It is now a common occurrence for a pre-pack sale of the business to be considered if at all possible. This has the effect preserving assts and jobs, which in the light of this country’s current economic difficulties, will be important. The process of a CVL is quite straight forward. A statement of affairs is prepared, and circulated to creditors. They are invited to a meeting, where it will be proposed that the company is liquidated and a liquidator appointed. Notice of this meeting must be at least two weeks. Very often now, creditors simply do not attend. They may send a proof of debt and a proxy voting form by post or fax prior to the meeting. Large creditors with good connections may be able to get a representative from a large accountant to come to the meting. This “meeting man” will ask pertinent questions of the directors as to why the business has failed, but this is really all for effect, as the closing of the business will be a formality. If the assets of the business have been pre-sold, an explanation of why will be given. Most practitioners have the resource to be able to meet you anywhere in the country that you require and can begin the process on a timetable to suit you. Please do not delay making that call. If you have a company in trouble take advice. About Author Steve is a qualified solicitor who specialises in debt solutions for businesses and companies alike. From pre-pack administrations to walk through bankruptcys he is always free to talk to. Disclaimer: Article submitters are solely responsible for the content of their articles. ArtiLib can't be held liable for the contents of the articles. Report Abuse | Browse By Category |
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