What
are the types of liquidation in Tamworth?
There are essentially
4.
Creditors Voluntary Liquidation. When a
Company is Insolvent the directors and shareholders agree to voluntarily
appoint a liquidator.
Members Voluntary Liquidation. When a
Company has no debt and is solvent and wants to voluntarily finalize the
affairs of a company.
Official Liquidation. A creditor applies
to the Court to appoints a liquidator.
Provisional
Liquidation. Mostly occurs when directors are in dispute on how to deal with
the affairs of the Company. The Court may appoint a liquidator.
As
a director in Tamworth what are my options?
As a director if you
are in financial difficulty or believe that you may be in the near future you
should talk to Insolvency Advisory Accountants. Essentially it needs to
be established if the company is solvent or insolvent. If it is insolvent, that is, not being able to pay the
debts as they fall due, then a Creditors Voluntary Liquidation (“CVLâ€) is
the only real option. Alternatively, if the company is solvent, a Members Voluntary Liquidation (“MVLâ€) is
required.
Official or Provisional
liquidation are normally brought about by an unpaid creditor and appointed via
the courts.
Why would I choose to liquidate my company in [Holder]?
Firstly, if the company
is insolvent it is a director’s duty to deal with the company. Being a director
of an insolvent company and continuing to trade
can have major personal repercussions.
A company liquidation will, in
most cases,
Minimize
a director’s exposure to a higher Insolvent Trading claim.
Deal
with most debt unless secured or with personal guarantees.
Deal
with the assets and outstanding debtors.
Deal with a non-lockdown Directors Penalty Notice
(DPN).
Orderly
go through a process to wind the company up.
If,
as a director, you feel that your company is in financial difficulty you should
call us to discuss. You accountant may be good at accounting but they may not
have the knowledge to deal with insolvency.