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Liquidation
Company liquidation can occur voluntarily or by court order where it has been established a company is unable to pay its debts as they fall due.
A liquidator is appointed to:
- investigate the company’s financial affairs,
- establish causes of failure,
- investigate possible offences, and
- identify and sell assets for the benefit of creditors.
Liquidation is immediate and serious. Trading companies are usually closed down. From the date of liquidation the liquidator takes custody and control of all the company’s unsecured assets and assists secured creditors where necessary. The assets are collected and sold for the benefit of the company’s creditors. When the liquidation is complete the company is struck off (removed from) the Register of Companies.
Accountants or solicitors can provide further information about options for insolvent companies.
What happens during a liquidation?
A liquidator has many responsibilities during the course of a liquidation. Here we outline some of the major milestones and events.
How could liquidation affect you?
Liquidation is immediate and serious. Trading companies are usually closed down. From the date of liquidation the liquidator takes custody and control of all the company’s unsecured assets and assists secured creditors where necessary. The assets are collected and sold for the benefit of the company’s creditors.
The completion of a liquidation
An outline of what happens when the liquidation of a company is complete.
Liquidation and Limited Partnerships
The liquidation provisions outlined in Part 16 of the Companies Act 1993 apply to Limited Partnerships and Overseas Limited Partnerships with some exceptions.
The liquidation life cycle
A flow chart providing a guide to the major steps in the liquidation process.
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