Creditors Liquidation (or Creditors Voluntary Liquidation) occurs when the directors and members of a company decide to wind-up the company. This typically arises when a company is insolvent. It involves a company members meeting and a meeting of creditors. An ordinary resolution is required for the winding-up of the company and another for the appointment of a liquidator. The liquidator may be appointed by a general vote. Again this situation results in the winding-up of the company with creditors paid in order of their ranking as secured, preferential or ordinary creditors.
We have extensive experience of creditors’ voluntary liquidations having completed over 50 of them. They can sometimes be fractious affairs if members and creditors are not in agreement on the choice of liquidator. They often require the cooperation of creditors and members when a committee of inspection is overseeing the liquidation. Our fifteen years experience means we are adept at dealing with all stakeholders and soliciting their cooperation to ensure the most cost-effective outcome.
For further information about our Creditors Liquidation (or Creditors Voluntary Liquidation) department please contact:
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