Liquidation is a process by which the assets of a company are realised and the proceeds distributed to the creditors and members.
During liquidation, the assets of a company are realised and the proceeds distributed.
Liquidation is a process by which the assets of a company are realised and the proceeds distributed to the creditors and members in the order of priority as determined by company legislation. There are three types of liquidations:
Members’ Voluntary Liquidation
A Members’ Voluntary Liquidation is a mechanism whereby a solvent company, acting through its directors and members, decides to wind-up a company, primarily for the purpose of realising its assets and distributing the surplus to its shareholders.
We assist the directors in the preparation of the Declaration of Solvency and in all the procedural steps necessary for the calling of the Extraordinary General Meeting (EGM). We also assist with the necessary filing requirements.
We act as Liquidator.
Creditors’ Voluntary Liquidation
A Creditors’ Voluntary Liquidation is usually initiated by the insolvent company, acting through its board. In a Creditors’ Voluntary Liquidation, the liquidator is primarily concerned with the interest of the creditors.
We assist by advising the directors of their statutory responsibilities, assisting the company in meeting the procedural requirements for placing it in liquidation, accepting appointment as Liquidator and realising the assets of the company for the benefit of all the creditors.
A Court Liquidation is commenced by order of the court on foot of a petition. The petitioner in a compulsory liquidation is most commonly the company or a creditor who will petition on the ground that a company is unable to pay its debts.
We accept appointments as court or official liquidator.
Following the appointment, our approach is to realise the assets of the company for the benefit of the creditors.
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