Voluntary Liquidation (or Creditors Voluntary Liquidation to give it its full legal name), is where the directors and shareholders of a company make the decision to place it into liquidation.
As it’s a formal insolvency process, it must be carried out by a licensed Insolvency Practitioner. Insolvency law puts in place certain time restrictions, as well as legal obligations for both the company, and the acting Insolvency Practitioner.
So, we’ve illustrated the basic processes involved below, however the first step is always to speak to a licensed insolvency practitioner to review your position.
Initial company liquidation advice meeting (completely free)
Timeline: Same day
Set up for either the same day for an ‘online meeting’, or a face to face meeting at a time and place to suit you. We’ll need at least one of the company’s directors there to explain the financial situation, after which we’ll give you an initial outline of various options available. We’ll leave you with a list of further information to get together.
Review information & advice (completely free)
Timeline: usually 1-14 days
We review all the information and advise you on all the available options (not just liquidation). We’ll provide you with a fee quote and our terms of business for review. We talk about how to deal with any company assets (and whether you wish to purchase them), along with any other matters specific to your company, such as leases, personal guarantees or contracts.
Instruction and convening the creditors meeting
Timeline: usually 1-3 days
If you would like to go ahead, and you have agreed to our terms, you formally instruct us to liquidate (or whatever option fits) on your behalf. We’ll call a meeting of shareholders and creditors, to take place usually 9 to 21 days after formal instruction.
Shareholders and Creditors meeting
Timeline: usually 9-18 days
The shareholders meeting takes place before the creditors meeting, and both meetings are held remotely. Read more about the meetings here. You will nominate one of your directors to attend by video link. Any creditors who have questions are asked to put them forward on the conference call. The meetings usually last between 30-90 minutes. The company is legally placed into liquidation.
Post liquidation assistance & closure
Timeline: usually 9-12 month
We work with you to ensure that the company’s books and records are moved to the liquidator’s office and that all assets are properly realised. Each director is required to complete a questionnaire and once we are happy that there are no outstanding matters, the liquidation is closed. Three months thereafter, the company is dissolved (removed from companies house).