A Creditors’ Voluntary Liquidation is the liquidation of a company that cannot pay its debts as they fall due. The process is initiated by the directors of a company where the company’s liabilities exceed its assets and is insolvent.
When the company directors realise the company does not have a reasonable prospect of survival, they are obliged by the Company’s Act to put the company into liquidation. The company should cease trading in a timely manner and, to protect all creditors including employees and shareholders, appoint a liquidator.
Once appointed, the Liquidator is responsible for securing and selling all the company’s assets, distributing the funds to the creditors and dealing with the company’s employees.
If you are faced with insolvency, either as a director, shareholder or as a creditor, Crowe’s insolvency services team can provide practical guidance and support, advising you of your rights, duties and responsibilities and the correct procedures and course of action you need to take. Our team is experienced in each step of the liquidation process and have a long track record, acting as both company and creditor-nominated liquidators, ensuring successful outcomes from companies of all sizes and from all sectors.
Our insolvency team offer a range of liquidation services in behalf of directors, shareholders or creditors:
- Advising directors and shareholders on the proper procedures to be adopted in discharging their statutory responsibilities
- Advice and assistance to creditors including representation at creditor meetings and provide timely reports on the progress of the liquidation
- Prepare a Statement of Affairs – a detailed inventory and professional appraisal of all assets, including buildings and other real estate holdings
- The calling and conduct of the various meetings involved in the liquidation process
- Deal with all company aspects relating to the banks, the Revenue Commissioners, quantification and prioritisation of creditors, employee claims, etc.
- Disburse payments to creditors as funds become available
- File a statutory report to the Office of the Director of Corporate Enforcement (ODCE) within six months of appointment
Contact our experienced team if you wish to confidentially discuss your requirements and receive a no-obligation consultation.