Liquidation

There are two forms of liquidation – voluntary or those commenced by creditors – and both are highly complex and are driven by statutory and legislative requirements.  It is important that you consult a professional from the outset of the process in order to avoid legal or tax pitfalls.

As a Company, you may elect to go into voluntary liquidation and appoint a liquidator to help you through this process.  You may do this either because you are unable to meet your financial obligations and therefore wish to avoid prosecution under the Companies Act 1993 or your Company has ceased trading as it has come to the end of its business life and there are still significant assets within the company.  The liquidation process will enable you to capitalise these assets and release that capital gain to the shareholders tax free under the Income Tax Act 1993.

A liquidation commenced by creditors, is one that happens once you are unable to meet your financial obligations.  Generally in this case, it is the creditor or group of creditors who appoint a liquidator and drive the process.

Regardless of which type of liquidation you are approaching, we can be appointed as the Liquidator and can help and advise you through this complex process.


 


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