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.
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
In fact no director needs to be goaded
to liquidate their company before a
proper pre-liquidation review is done.
planning to be undertaken as well. It
is of utmost importance that the
director understands and accepts as
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
is done with an
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.
which are over company assets are discussed too. Finally, the outcomes
are evaluated if the
procedures. Each of
procedures is evaluated to weigh as to which ones are more suitable in
the given circumstances.
The alternative procedures which can be applied are:
Administration which is pre-packed
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.
shareholder's agreement of
the CVL is to be shown
officially during the meeting
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
winding up of the company. They should agree to the charges 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.