Voluntary Liquidations FAQ's
01/07/2013 | Creditors Voluntary Liquidation
How do I place my company in Voluntary Liquidation?
If a director believes that his company may be insolvent he should contact an Insolvency Practitioner (Tim Corfield 01922 722205) to discuss more carefully the financial position of the company and possible options. The insolvency practitioner will advise the directors as to whether voluntary liquidation is the correct insolvency process to deal with the circumstances surrounding the company.
Once the directors are satisfied that the company is insolvent and that there is no prospect of a rescue procedure being implemented, formal resolutions will be approved by the directors to call a creditors meeting and instruct the insolvency practitioner to prepare a Statement of Affairs.
This process can be commenced very quickly.
The meeting of creditors will usually take place within 14 to 28 days following the approval of the directors’ resolutions depending upon the articles of the company and the precise procedure proposed by the insolvency practitioner.
At the meeting of the creditors an insolvency practitioner will be appointed liquidator of the company.
What information will the Insolvency Practitioner need?
The insolvency practitioner will need to understand the rough financial position of the company. These would include estimations of value of;
- fixed assets,
- trade debtors
- any other debts due,
- creditors including trade suppliers and HMRC.
Estimated figures would suffice. It is most likely that the directors will know approximately what the amounts are and recourse to the detailed records will not be necessary for the insolvency practitioner to advise the directors.