Liquidation & Insolvency
Our approach is inclusive and, wherever possible, we work towards mutually agreeable solutions that meet the needs of all stakeholders to maximise the return.
There are a number of ways a company can go into liquidation. In most cases the company decides to stop trading and the shareholders appoint a liquidator.
Liquidation is the effective end of a company’s life.
Voluntary liquidation of insolvent companies
When the shareholders and directors of a company have identified that the business is insolvent an orderly winding-up of its affairs is required. The process is very simple and normally involves shareholders signing a written resolution appointing liquidators.
In most cases we charge no up front fees.
Often people confuse liquidation with receivership. When your business is put into receivership a secured creditor takes control of the company in order to recover what they are owed. A receiver is acting on behalf of a secured creditor. A liquidator on the other hand is working for all creditors and is appointed by the company’s shareholders or the courts.
Court appointed liquidation - Winding-up application
This is where a creditor presents a formal winding-up application to the courts. In this scenario a creditor, not the shareholders, decides who is to be appointed liquidator.
If you receive a statutory demand from a creditor, contact one of the team at Staples Rodway. We can help you resolve the situation.
Contact our experts
Latest Business Recovery Articles
Make the most of your lunch break and join us for a quick, free business lesson and Q+A. Bring your lunch and receive a 15-20min lesson plus the chance to put questions to our talented team. We will hold these sessions every first Wednesday of the month at Johnson Corner, with each session covering a different topic
Setting up a business can be a daunting task, filled with a lot of unknowns. This was certainly the case for husband and wife team Steve and Angela Bevan, owners of award winning irrigation business; Think Water New Plymouth.