TIPS BEFORE YOU APPOINT A LIQUIDATOR
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Tips before You Appoint a Liquidator PowerPoint PPT Presentation


Liquidation is a stressful period for the management, for the company and for the creditors. Whether it is a voluntary liquidation (CVL) or compulsory liquidation.

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Tips before You Appoint a Liquidator

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Tips before you appoint a liquidator

TIPS BEFORE YOU APPOINT A LIQUIDATOR

TIPS BEFORE YOU APPOINT A LIQUIDATOR

Liquidation is a stressful period for the management, for the company and

for the creditors. Whether it is a

voluntary

liquidation

compulsory liquidation.

(CVL)

or

In fact no director needs to be goaded

to liquidate their company before a

proper pre-liquidation review is done.

This

includes

a

planning to be undertaken as well. It

is of utmost importance that the

director understands and accepts as

comprehensive

well as agrees to what would be the outcome of the liquidation.

Therefore, before a liquidator has been appointed, these are the steps that

should be taken:

a)Pre-liquidation planning: This is a necessary step before there is a

voluntary liquidation being undertaken. A brief and professional

review is to be conducted regarding the finances of the firm. The main

aim and purpose

of this review are

fact-finding. This

is done with an

insolvency

expert.

During

this

exercise,

there

are

a

number

of

recommendations which are given which could be explored rather than

a creditors voluntary liquidation route.

During the meeting held, the expectations of both the directors as well

as the shareholders are explored. Also what is explored is if they want

the business to wind up or if they want the business to be rescued.


Tips before you appoint a liquidator

During this, the company accounts are to be discussed. The charges

which are over company assets are discussed too. Finally, the outcomes

are evaluated if the

company

goes

through

alternative

insolvency

procedures. Each of

these

alternative

procedures is evaluated to weigh as to which ones are more suitable in

the given circumstances.

Alternative procedures

The alternative procedures which can be applied are:

Pre-pack liquidation

Administration which is pre-packed

Administration and

The company voluntary arrangement

This review is of utmost importance to ensure that the best outcome

for the creditors, as well as the business, is evaluated. These insolvency

practitioners either offer the initial review free of cost or they may

charge a fee for it. This review can be undertaken either at the place of

work or at home or even at

some other place.

After

this

meeting,

shareholder's agreement of

the CVL is to be shown

officially during the meeting

of

the

the

shareholders.

Appropriate resolutions are to be passed. The directors usually give 14

days of notice before an extraordinary general meeting is to be held. At

the meeting, at least 75% of the voting shareholders should agree to the


Tips before you appoint a liquidator

winding up of the company. They should agree to the Insolvency

Lawyers Balmain which will be appointed as well.

This resolution is then to be filed with the office of the Registrar of

Companies within 15 days of the resolution being passed.

The powers which the R egistered Liquidator Balmain are limited until the time

he or she is officially appointed as a liquidator of the firm.

 


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