In order to identify whether a CVL, an MVL, or another process is appropriate, the liquidator will begin to analyse the business. In the event that the directors of the company intend to close it, the liqudation of the company may be the best option.
Liquidators are appointed once the power of the directors ceases, and they assume responsibility for the company’s affairs. Under the circumstances, it falls to the liquidator to ensure the best possible result for creditors.
Typically, the liquidator will go through these steps:
Information is collected and analysed promptly and thoroughly. It includes all books and records of the company, details of its assets including cash and debt, and all non-physical assets.
Full List of Creditors
An accurate list of creditors with their names, addresses, and reference numbers must be provided by the directors.
A formal notice will be sent to every creditor listed by the insolvency practitioner.
Creditors will receive a value for all assets of the company. Liquidation costs are first deducted, followed by voluntary liquidation costs, before all other creditors – secured, preferential, and unsecured – are paid in stages until all the cash is spent.
|The company insolvency practitioners are responsible for terminating employees, dealing with employee claims, and investigating the conduct of directors.