Liquidation Allows the directors and owners to close down a company and move on
If a company has become insolvent, the directors are on notice that they maybe required to personally contribute to
the company's assets if they carry on trading, knowing that the company could not reasonably avoid going into insolvent
liquidation. The directors can instruct Gilmore Robins to call meetings of the shareholders and creditors, with a view
of appointing us as liquidators in the company liquidation. Once appointed, it is our duty to realise the assets of
the company and any money realised is used after payment of costs to pay creditors, in the company liquidation, in a
specific order.
Gilmore Robins will assist employees in the company liquidation in making their claims for redundancy pay, unpaid wages , holiday pay or notice pay from the Redundancy Payments Office. We will help take the strain away from the directors.
If the directors have not delayed too long in placing their insolvent company into company liquidation, a new business can be set up giving them the reassurance of knowing that they are clear of the old company's debts. They will only be liable for any debts which they have personally guaranteed.
Liquidation should be considered as a last resort once all other avenues to rescue a business have failed. It provides directors with the peace of mind that the affairs of the business are being properly dealt with and reduces the possibility of accusations relating to wrongful trading (trading whilst insolvent is an offence that could result in personal liability for directors).
Once a company commences liquidation, the business is usually closed and the employees laid off. A meeting of shareholders and creditors (known as a Section 98 meeting) is then held to place the company into liquidation.
Once in liquidation, the Liquidator (who must be a Licensed Insolvency Practitioner (IP) takes control of the business and its assets. The IP will then sell the assets, collect any debts owed to the business and deal with any other matters such as leases.
Our service
We can assist in placing a business into liquidation if this is the most appropriate option and ensure that the statutory process is properly conducted. Once instructed, we will inform creditors and liaise directly with them to reduce the stress on directors. We will then work with directors to prepare the necessary report and Statement of Affairs that must be presented at the creditors meeting.
Although the meeting of creditors must be chaired by a director of the company, we will usually conduct the meeting on their behalf and deal with any statutory aspects. We will also brief the directors prior to the meeting about what to expect so that they can prepare in advance for potential questions and queries.
Once in liquidation, we will deal with the affairs of a business quickly and efficiently. This ensures that the liquidation does not drag on for years and that creditors receive any dividend quickly. Most stakeholders will be given access to our website so that they can track the current status and see how long distributions and closure will take.
More information
If you require further information or wish to discuss which of these options are appropriate for your business please contact us via our webform or call us on 0844 6933108.