Piece of mind when Liquidating your company
By changing the way the Liquidation process runs we are able to offer a service that efficiently Liquidates a company, whilst offering Directors piece of mind.
Voluntary Liquidation has always worked in one particular way:
- Directors instruct Liquidator to start Liquidation Process
- Meeting of Creditors called to explain why the company is Liquidating
- Liquidator formally appointed
- Liquidator conducts report into companies activities
- Any problems are raised and pursued by the Liquidator
On the surface this may seem fairly simple. There is one subtle problem with it that you won’t realise unless you have been through it:
Problems aren’t discovered until the company is in Liquidation.
What does this mean for a Director? Well they have already signed over control of the company, the Liquidator is in office and is there to look after the interests of the Creditors – not the Director’s.
This means that if there is a problem, for instance – an overdrawn loan account or issues over dividends, the Liquidator has full control over how this is handled – not the Director. For many Directors this can lead to problems.
There many Liquidators who can take a very heavy handed approach to dealing with problems in Liquidation, declaring that they are only looking after the Creditors’ interests, while their costs meter is ticking away.
So what’s the new process?
The fundamental problem with the old style of Liquidation comes from the fact the Liquidator is not formally appointed until the meeting of creditors, this means they are limited to how much work they are likely to get paid for before they are appointed. Understandably they don’t want to put too much effort into something they may never see the benefit of.
What if we did a dry run of the Liquidation, without all the formal reports and paperwork that the actual Liquidation needs, but enough to find the problems that might impact a Director.
That would mean that the Director could agree a resolution to the problems, prior to the Liquidators appointment, while they still have control over what is going to happen.
Keeping it legal
Obviously we’re not on about doing anything illegal. What we are on about is handling problems that you had not realised would cause a problem in a much calmer way. This means all the potential problems have been ironed out prior to the company actually liquidating.
But what about the creditors?
For creditors it won’t make much difference. Money owed to the company is still paid in the same way, they still get any dividend they would have done under a ‘normal’ Liquidation. In fact in most cases they end with more money as there is less time (and so costs) involved in handling the situation.
So how does this new Liquidation work in practice?
- You instruct us to start the Liquidation process
- Pass us the company accounts (this wouldn’t normally happen until the Meeting of Creditors)
- We review them and flag up any potential issues
- We discuss any issues with you and come to a resolution
- Once agreed we call the Meeting of Creditors
- The company then goes into Voluntary Liquidation as normal
There’s obviously a few more steps involved – but the end result is you being able to close your company without the stress.
How can we help
Unlike other Liquidation Companies, we have structured ourselves and our Voluntary Liquidation Services in a way that genuinely helps you the most.
By Liquidating through us, we will:-
- Ensure you are aware of any problems before you commit to Liquidation
- Make sure your Liquidation goes as smoothly as possible
- Deal with any issues before they become a problem
- Try to make sure this is your first and only Liquidation
- Minimize the pain of Voluntary Liquidation
Make a fresh start in business and start your Liquidation – call 0800 612 94 78 now.