Creditors’ Voluntary Liquidation Process
Our 6 Steps to a Creditors’ Voluntary Liquidation
- It should always be remembered that the decision to commence the Creditors’ Voluntary Liquidation Procedure should only be taken after advice has been received from a Licensed Insolvency Practitioner to consider all options for the company.
- At Liquidation.co.uk we can offer such advice and as Licensed Insolvency Practitioners are able to deliver all formal company Insolvency and Rescue options. Liquidation.co.uk will prepare all the necessary paperwork to convene and minute all meetings required.
- The first step to start the formal Creditors’ Voluntary Liquidation procedure is to hold a meeting of the company Directors who meet to agree that the company is insolvent and that they wish to see the company proceed into Creditors’ Voluntary Liquidation. We will prepare a record (a minute) of this meeting as part of our support.
- The directors also agree to convene meetings of shareholders and a Creditors’ Decision Procedure in order to resolve to place the company into liquidation. It is normal for the company to then cease trading, with the company’s employees being made redundant. We will prepare this paperwork for you. Don’t forget to discusss the option to restart the business.
- Liquidation.co.uk will assist with employee matters ensuring that any claims that the employees may have against the Government Redundancy Payments Office are dealt with. Liquidation.co.uk will also deal with calls from creditors (any one owed money by the company) of the company from the point at which we are formally requested to act on the company’s behalf with regard to the Creditors’ Voluntary Liquidation of the Company.
- Once appointed by members and then creditors, the liquidator has three primary duties:
- To realise the company’s assets
- To agree the claims of the company’s creditors and make payment to Creditors where possible
- To investigate the company’s affairs and the directors conduct
To understand more about a Creditors’ Voluntary Liquidation please get in touch or read more here.