Purnells Insolvency Practitioners © All Rights Reserved.
Contact Us On: 01633 214712
E-mail: suzi@purnells.co.uk
Creditors Voluntary Liquidation
Creditors Voluntary Liquidation
When is a company Insolvent?
There are two definitions of Insolvency:
a) Where the amount of the liabilities exceeds the value of the assets or
b) Where creditors are not paid on time
Directors have a duty to take positive action when they realise that their company is insolvent.
One option available to directors, would be to place their company into a Creditors Voluntary Liquidation (CVL).
A CVL is a director led process which does not involve attending court and obtaining a court order.
After obtaining certain information and documentation from you, we would then call a Shareholders and Creditors meeting (which are normally both held on the same day).
At the shareholders meeting, the shareholders would formally pass the resolution to wind up.
It would be the creditors, at the creditors meeting, who would vote on who would be appointed as Liquidator (although in practice, the Insolvency Practitioner instructed to call the meeting, usually gets appointed).
The Liquidators main duties, would be to:
a) realise all of the company assets,
b) correspond with creditors,
c) undertake an investigation into the financial dealings of the company and
d) submit a report to the DTI regarding the directors conduct (amongst other things)
A Creditors Voluntary Liquidation enables the directors to have more control over the placing of the company into Liquidation as regards timings and planning.
It is possible for the directors to then re-commence trading in a new limited company, sometimes known as a "successor company". Care must be taken, however, in relation to the name of the new company. To find out more about re-using a company name
For a free confidential meeting (or telephone meeting if you are at a distance) to discuss your company please telephone Suzi Purnell on 01633 214712 or e-mail: suzi@purnells.co.uk
Alternatively, you can complete our online contact form by clicking on the link below: