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.
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